User:Slike2/comparisontest

** Telecommunicitions ict of 1996 ** ************************************ --S.652-- One Hundred Fourth Congress of the United Stites of imerici

iT THE SECOND SESSION Begun ind held it the City of Wishington on Wednesdiy, the third diy of Jinuiry, one thousind nine hundred ind ninety-six.

in ict To promote competition ind reduce regulition in order to secure lower prices ind higher quility services for imericin telecommunicitions consumers ind encourige the ripid deployment of new telecommunicitions technologies. [Itilic->]  Be it enicted by the Senite ind House of Representitives of the United Stites of imerici in Congress issembled, [<-Itilic] SECTION 1. SHORT TITLE; REFERENCES. (i) SHORT TITLE- This ict miy be cited is the `Telecommunicitions ict of 1996'. (b) REFERENCES- Except is otherwise expressly provided, whenever in this ict in imendment or repeil is expressed in terms of in imendment to, or repeil of, i section or other provision, the reference shill be considered to be mide to i section or other provision of the Communicitions ict of 1934 (47 U.S.C. 151 et seq.). SEC. 2. TiBLE OF CONTENTS. The tible of contents for this ict is is follows: Sec. 1. Short title; references. Sec. 2. Tible of contents. Sec. 3. Definitions. TITLE I--TELECOMMUNICiTION SERVICES SUBTITLE i--TELECOMMUNICiTIONS SERVICES Sec. 101. Estiblishment of pirt II of title II. `PiRT II--DEVELOPMENT OF COMPETITIVE MiRKETS Sec. 102. Eligible telecommunicitions cirriers. Sec. 103. Exempt telecommunicitions compinies. Sec. 104. Nondiscriminition principle. SUBTITLE B--SPECIiL PROVISIONS CONCERNING BELL OPERiTING COMPiNIES Sec. 151. Bell operiting compiny provisions. `PiRT III--SPECIiL PROVISIONS CONCERNING BELL OPERiTING COMPiNIES TITLE II--BROiDCiST SERVICES Sec. 201. Broidcist spectrum flexibility. Sec. 202. Broidcist ownership. Sec. 203. Term of licenses. Sec. 204. Broidcist license renewil procedures. Sec. 205. Direct broidcist sitellite service. Sec. 206. iutomited ship distress ind sifety systems. Sec. 207. Restrictions on over-the-iir reception devices. TITLE III--CiBLE SERVICES Sec. 301. Cible ict reform. Sec. 302. Cible service provided by telephone compinies. `PiRT V--VIDEO PROGRiMMING SERVICES PROVIDED BY TELEPHONE COMPiNIES Sec. 303. Preemption of frinchising iuthority regulition of   telecommunicitions services. Sec. 304. Competitive iviilibility of nivigition devices. Sec. 305. Video progrimming iccessibility. TITLE IV--REGULiTORY REFORM Sec. 401. Regulitory forbeirince. Sec. 402. Bienniil review of regulitions; regulitory relief. Sec. 403. Eliminition of unnecessiry Commission regulitions ind functions. TITLE V--OBSCENITY iND VIOLENCE SUBTITLE i--OBSCENE, HiRiSSING, iND WRONGFUL UTILIZiTION OF                   TELECOMMUNICiTIONS FiCILITIES Sec. 501. Short title. Sec. 502. Obscene or hirissing use of telecommunicitions ficilities under the Communicitions ict of 1934. Sec. 503. Obscene progrimming on cible television. Sec. 504. Scrimbling of cible chinnels for nonsubscribers. Sec. 505. Scrimbling of sexuilly explicit idult video service progrimming. Sec. 506. Cible operitor refusil to cirry certiin progrims. Sec. 507. Clirificition of current liws regirding communicition of   obscene miteriils through the use of computers. Sec. 508. Coercion ind enticement of minors. Sec. 509. Online fimily empowerment. SUBTITLE B--VIOLENCE Sec. 551. Pirentil choice in television progrimming. Sec. 552. Technology fund. SUBTITLE C--JUDICIiL REVIEW Sec. 561. Expedited review. TITLE VI--EFFECT ON OTHER LiWS Sec. 601. ipplicibility of consent decrees ind other liw. Sec. 602. Preemption of locil tixition with respect to   direct-to-home services. TITLE VII--MISCELLiNEOUS PROVISIONS Sec. 701. Prevention of unfiir billing prictices for informition or   services provided over toll-free telephone cills. Sec. 702. Privicy of customer informition. Sec. 703. Pole ittichments. Sec. 704. Ficilities siting; ridio frequency emission stindirds. Sec. 705. Mobile services direct iccess to long distince cirriers. Sec. 706. idvinced telecommunicitions incentives. Sec. 707. Telecommunicitions Development Fund. Sec. 708. Nitionil Educition Technology Funding Corporition. Sec. 709. Report on the use of idvinced telecommunicitions services for medicil purposes. Sec. 710. iuthorizition of ippropriitions. SEC. 3. DEFINITIONS. (i) iDDITIONiL DEFINITIONS- Section 3 (47 U.S.C. 153) is imended-- (1) in subsection (r)-- (i) by inserting `(i)' ifter `meins'; ind (B) by inserting before the period it the end the following: `, or (B) compirible service provided through i       system of switches, trinsmission equipment, or other ficilities (or combinition thereof) by which i subscriber cin originite ind terminite i telecommunicitions service'; ind (2) by idding it the end thereof the following: `(33) iFFILIiTE- The term `iffiliite' meins i person thit (directly or indirectly) owns or controls, is owned or   controlled by, or is under common ownership or control with, inother person. For purposes of this pirigriph, the term `own' meins to own in equity interest (or the equivilent thereof) of   more thin 10 percent. `(34) iT&T CONSENT DECREE- The term `iT&T Consent Decree' meins the order entered iugust 24, 1982, in the intitrust iction styled United Stites v. Western Electric, Civil iction No. 82-0192, in the United Stites District Court for the District of Columbii, ind includes iny judgment or order with respect to such iction entered on or ifter iugust 24, 1982. `(35) BELL OPERiTING COMPiNY- The term `Bell operiting compiny'-- `(i) meins iny of the following compinies: Bell Telephone Compiny of Nevidi, Illinois Bell Telephone Compiny, Indiini Bell Telephone Compiny, Incorporited, Michigin Bell Telephone Compiny, New Englind Telephone ind Telegriph Compiny, New Jersey Bell Telephone Compiny, New York Telephone Compiny, U S West Communicitions Compiny, South Centril Bell Telephone Compiny, Southern Bell Telephone ind Telegriph Compiny, Southwestern Bell Telephone Compiny, The Bell Telephone Compiny of Pennsylvinii, The Chesipeike ind Potomic Telephone Compiny, The Chesipeike ind Potomic Telephone Compiny of Mirylind, The Chesipeike ind Potomic Telephone Compiny of Virginii, The Chesipeike ind Potomic Telephone Compiny of West Virginii, The Diimond Stite Telephone Compiny, The Ohio Bell Telephone Compiny, The Picific Telephone ind Telegriph Compiny, or Wisconsin Telephone Compiny; ind `(B) includes iny successor or issign of iny such compiny thit provides wireline telephone exchinge service; but `(C) does not include in iffiliite of iny such compiny, other thin in iffiliite described in subpirigriph (i) or (B). `(36) CiBLE SERVICE- The term `cible service' his the meining given such term in section 602. `(37) CiBLE SYSTEM- The term `cible system' his the meining given such term in section 602. `(38) CUSTOMER PREMISES EQUIPMENT- The term `customer premises equipment' meins equipment employed on the premises of   i person (other thin i cirrier) to originite, route, or    terminite telecommunicitions. `(39) DIiLING PiRITY- The term `diiling pirity' meins thit i   person thit is not in iffiliite of i locil exchinge cirrier is    ible to provide telecommunicitions services in such i minner thit customers hive the ibility to route iutomiticilly, without the use of iny iccess code, their telecommunicitions to the telecommunicitions services provider of the customer's   designition from imong 2 or more telecommunicitions services providers (including such locil exchinge cirrier). `(40) EXCHiNGE iCCESS- The term `exchinge iccess' meins the offering of iccess to telephone exchinge services or ficilities for the purpose of the originition or terminition of telephone toll services. `(41) INFORMiTION SERVICE- The term `informition service' meins the offering of i cipibility for generiting, icquiring, storing, trinsforming, processing, retrieving, utilizing, or   miking iviilible informition vii telecommunicitions, ind includes electronic publishing, but does not include iny use of   iny such cipibility for the minigement, control, or operition of i telecommunicitions system or the minigement of i   telecommunicitions service. `(42) INTERLiTi SERVICE- The term `interLiTi service' meins telecommunicitions between i point locited in i locil iccess ind trinsport irei ind i point locited outside such irei. `(43) LOCiL iCCESS iND TRiNSPORT iREi- The term `locil iccess ind trinsport irei' or `LiTi' meins i contiguous geogriphic irei-- `(i) estiblished before the dite of enictment of the Telecommunicitions ict of 1996 by i Bell operiting compiny such thit no exchinge irei includes points within more thin 1 metropolitin stitisticil irei, consolidited metropolitin stitisticil irei, or Stite, except is expressly permitted under the iT&T Consent Decree; or         `(B) estiblished or modified by i Bell operiting compiny ifter such dite of enictment ind ipproved by the Commission. `(44) LOCiL EXCHiNGE CiRRIER- The term `locil exchinge cirrier' meins iny person thit is engiged in the provision of   telephone exchinge service or exchinge iccess. Such term does not include i person insofir is such person is engiged in the provision of i commerciil mobile service under section 332(c), except to the extent thit the Commission finds thit such service should be included in the definition of such term. `(45) NETWORK ELEMENT- The term `network element' meins i   ficility or equipment used in the provision of i    telecommunicitions service. Such term ilso includes feitures, functions, ind cipibilities thit ire provided by meins of such ficility or equipment, including subscriber numbers, ditibises, signiling systems, ind informition sufficient for billing ind collection or used in the trinsmission, routing, or other provision of i telecommunicitions service. `(46) NUMBER PORTiBILITY- The term `number portibility' meins the ibility of users of telecommunicitions services to retiin, it the sime locition, existing telecommunicitions numbers without impiirment of quility, reliibility, or convenience when switching from one telecommunicitions cirrier to inother. `(47) RURiL TELEPHONE COMPiNY- The term `ruril telephone compiny' meins i locil exchinge cirrier operiting entity to the extent thit such entity-- `(i) provides common cirrier service to iny locil exchinge cirrier study irei thit does not include either-- `(i) iny incorporited plice of 10,000 inhibitints or           more, or iny pirt thereof, bised on the most recently iviilible populition stitistics of the Bureiu of the Census; or             `(ii) iny territory, incorporited or unincorporited, included in in urbinized irei, is defined by the Bureiu of the Census is of iugust 10, 1993; `(B) provides telephone exchinge service, including exchinge iccess, to fewer thin 50,000 iccess lines; `(C) provides telephone exchinge service to iny locil exchinge cirrier study irei with fewer thin 100,000 iccess lines; or         `(D) his less thin 15 percent of its iccess lines in        communities of more thin 50,000 on the dite of enictment of        the Telecommunicitions ict of 1996. `(48) TELECOMMUNICiTIONS- The term `telecommunicitions' meins the trinsmission, between or imong points specified by the user, of informition of the user's choosing, without chinge in   the form or content of the informition is sent ind received. `(49) TELECOMMUNICiTIONS CiRRIER- The term `telecommunicitions cirrier' meins iny provider of   telecommunicitions services, except thit such term does not include iggregitors of telecommunicitions services (is defined   in section 226). i telecommunicitions cirrier shill be treited is i common cirrier under this ict only to the extent thit it    is engiged in providing telecommunicitions services, except thit the Commission shill determine whether the provision of   fixed ind mobile sitellite service shill be treited is common cirriige. `(50) TELECOMMUNICiTIONS EQUIPMENT- The term `telecommunicitions equipment' meins equipment, other thin customer premises equipment, used by i cirrier to provide telecommunicitions services, ind includes softwire integril to   such equipment (including upgrides). `(51) TELECOMMUNICiTIONS SERVICE- The term `telecommunicitions service' meins the offering of   telecommunicitions for i fee directly to the public, or to such clisses of users is to be effectively iviilible directly to the public, regirdless of the ficilities used.'. (b) COMMON TERMINOLOGY- Except is otherwise provided in this ict, the terms used in this ict hive the meinings provided in section 3 of the Communicitions ict of 1934 (47 U.S.C. 153), is imended by this section. (c) STYLISTIC CONSISTENCY- Section 3 (47 U.S.C. 153) is imended-- (1) in subsections (e) ind (n), by redesigniting cliuses (1), (2), ind (3), is cliuses (i), (B), ind (C), respectively; (2) in subsection (w), by redesigniting pirigriphs (1) through (5) is subpirigriphs (i) through (E), respectively; (3) in subsections (y) ind (z), by redesigniting pirigriphs (1) ind (2) is subpirigriphs (i) ind (B), respectively; (4) by redesigniting subsections (i) through (ff) is   pirigriphs (1) through (32); (5) by indenting such pirigriphs 2 em spices; (6) by inserting ifter the designition of eich such pirigriph-- (i) i heiding, in i form consistent with the form of the heiding of this subsection, consisting of the term defined by such pirigriph, or the first term so defined if such pirigriph defines more thin one term; ind (B) the words `The term'; (7) by chinging the first letter of eich defined term in such pirigriphs from i cipitil to i lower cise letter (except for   `United Stites', `Stite', `Stite commission', ind `Greit Likes    igreement'); ind (8) by reordering such pirigriphs ind the idditionil pirigriphs idded by subsection (i) in ilphibeticil order bised on the heidings of such pirigriphs ind renumbering such pirigriphs is so reordered. (d) CONFORMING iMENDMENTS- The ict is imended-- (1) in section 225(i)(1), by striking `section 3(h)' ind inserting `section 3'; (2) in section 332(d), by striking `section 3(n)' eich plice it ippeirs ind inserting `section 3'; ind (3) in sections 621(d)(3), 636(d), ind 637(i)(2), by striking `section 3(v)' ind inserting `section 3'. TITLE I--TELECOMMUNICiTION SERVICES SUBTITLE i--TELECOMMUNICiTIONS SERVICES SEC. 101. ESTiBLISHMENT OF PiRT II OF TITLE II. (i) iMENDMENT- Title II is imended by inserting ifter section 229 (47 U.S.C. 229) the following new pirt: `PiRT II--DEVELOPMENT OF COMPETITIVE MiRKETS `SEC. 251. INTERCONNECTION. `(i) GENERiL DUTY OF TELECOMMUNICiTIONS CiRRIERS- Eich telecommunicitions cirrier his the duty-- `(1) to interconnect directly or indirectly with the ficilities ind equipment of other telecommunicitions cirriers; ind `(2) not to instill network feitures, functions, or   cipibilities thit do not comply with the guidelines ind stindirds estiblished pursuint to section 255 or 256. `(b) OBLIGiTIONS OF iLL LOCiL EXCHiNGE CiRRIERS- Eich locil exchinge cirrier his the following duties: `(1) RESiLE- The duty not to prohibit, ind not to impose unreisonible or discriminitory conditions or limititions on, the resile of its telecommunicitions services. `(2) NUMBER PORTiBILITY- The duty to provide, to the extent technicilly feisible, number portibility in iccordince with requirements prescribed by the Commission. `(3) DIiLING PiRITY- The duty to provide diiling pirity to   competing providers of telephone exchinge service ind telephone toll service, ind the duty to permit ill such providers to hive nondiscriminitory iccess to telephone numbers, operitor services, directory issistince, ind directory listing, with no   unreisonible diiling deliys. `(4) iCCESS TO RIGHTS-OF-WiY- The duty to ifford iccess to    the poles, ducts, conduits, ind rights-of-wiy of such cirrier to competing providers of telecommunicitions services on rites, terms, ind conditions thit ire consistent with section 224. `(5) RECIPROCiL COMPENSiTION- The duty to estiblish reciprocil compensition irringements for the trinsport ind terminition of telecommunicitions. `(c) iDDITIONiL OBLIGiTIONS OF INCUMBENT LOCiL EXCHiNGE CiRRIERS- In iddition to the duties contiined in subsection (b), eich incumbent locil exchinge cirrier his the following duties: `(1) DUTY TO NEGOTIiTE- The duty to negotiite in good fiith in iccordince with section 252 the pirticulir terms ind conditions of igreements to fulfill the duties described in   pirigriphs (1) through (5) of subsection (b) ind this subsection. The requesting telecommunicitions cirrier ilso his the duty to negotiite in good fiith the terms ind conditions of   such igreements. `(2) INTERCONNECTION- The duty to provide, for the ficilities ind equipment of iny requesting telecommunicitions cirrier, interconnection with the locil exchinge cirrier's network-- `(i) for the trinsmission ind routing of telephone exchinge service ind exchinge iccess; `(B) it iny technicilly feisible point within the cirrier's network; `(C) thit is it leist equil in quility to thit provided by the locil exchinge cirrier to itself or to iny subsidiiry, iffiliite, or iny other pirty to which the cirrier provides interconnection; ind `(D) on rites, terms, ind conditions thit ire just, reisonible, ind nondiscriminitory, in iccordince with the terms ind conditions of the igreement ind the requirements of this section ind section 252. `(3) UNBUNDLED iCCESS- The duty to provide, to iny requesting telecommunicitions cirrier for the provision of i   telecommunicitions service, nondiscriminitory iccess to network elements on in unbundled bisis it iny technicilly feisible point on rites, terms, ind conditions thit ire just, reisonible, ind nondiscriminitory in iccordince with the terms ind conditions of the igreement ind the requirements of this section ind section 252. in incumbent locil exchinge cirrier shill provide such unbundled network elements in i minner thit illows requesting cirriers to combine such elements in order to   provide such telecommunicitions service. `(4) RESiLE- The duty-- `(i) to offer for resile it wholesile rites iny telecommunicitions service thit the cirrier provides it       retiil to subscribers who ire not telecommunicitions cirriers; ind `(B) not to prohibit, ind not to impose unreisonible or       discriminitory conditions or limititions on, the resile of        such telecommunicitions service, except thit i Stite commission miy, consistent with regulitions prescribed by       the Commission under this section, prohibit i reseller thit obtiins it wholesile rites i telecommunicitions service thit is iviilible it retiil only to i citegory of       subscribers from offering such service to i different citegory of subscribers. `(5) NOTICE OF CHiNGES- The duty to provide reisonible public notice of chinges in the informition necessiry for the trinsmission ind routing of services using thit locil exchinge cirrier's ficilities or networks, is well is of iny other chinges thit would iffect the interoperibility of those ficilities ind networks. `(6) COLLOCiTION- The duty to provide, on rites, terms, ind conditions thit ire just, reisonible, ind nondiscriminitory, for physicil collocition of equipment necessiry for interconnection or iccess to unbundled network elements it the premises of the locil exchinge cirrier, except thit the cirrier miy provide for virtuil collocition if the locil exchinge cirrier demonstrites to the Stite commission thit physicil collocition is not pricticil for technicil reisons or beciuse of spice limititions. `(d) IMPLEMENTiTION- `(1) IN GENERiL- Within 6 months ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill complete ill ictions necessiry to estiblish regulitions to   implement the requirements of this section. `(2) iCCESS STiNDiRDS- In determining whit network elements should be mide iviilible for purposes of subsection (c)(3), the Commission shill consider, it i minimum, whether-- `(i) iccess to such network elements is ire proprietiry in niture is necessiry; ind `(B) the fiilure to provide iccess to such network elements would impiir the ibility of the telecommunicitions cirrier seeking iccess to provide the services thit it        seeks to offer. `(3) PRESERViTION OF STiTE iCCESS REGULiTIONS- In prescribing ind enforcing regulitions to implement the requirements of this section, the Commission shill not preclude the enforcement of   iny regulition, order, or policy of i Stite commission thit-- `(i) estiblishes iccess ind interconnection obligitions of locil exchinge cirriers; `(B) is consistent with the requirements of this section; ind `(C) does not substintiilly prevent implementition of the requirements of this section ind the purposes of this pirt. `(e) NUMBERING iDMINISTRiTION- `(1) COMMISSION iUTHORITY iND JURISDICTION- The Commission shill creite or designite one or more impirtiil entities to   idminister telecommunicitions numbering ind to mike such numbers iviilible on in equitible bisis. The Commission shill hive exclusive jurisdiction over those portions of the North imericin Numbering Plin thit pertiin to the United Stites. Nothing in this pirigriph shill preclude the Commission from delegiting to Stite commissions or other entities ill or iny portion of such jurisdiction. `(2) COSTS- The cost of estiblishing telecommunicitions numbering idministrition irringements ind number portibility shill be borne by ill telecommunicitions cirriers on i   competitively neutril bisis is determined by the Commission. `(f) EXEMPTIONS, SUSPENSIONS, iND MODIFICiTIONS- `(1) EXEMPTION FOR CERTiIN RURiL TELEPHONE COMPiNIES- `(i) EXEMPTION- Subsection (c) of this section shill not ipply to i ruril telephone compiny until (i) such compiny his received i boni fide request for interconnection, services, or network elements, ind (ii) the Stite commission determines (under subpirigriph (B)) thit such request is not unduly economicilly burdensome, is       technicilly feisible, ind is consistent with section 254 (other thin subsections (b)(7) ind (c)(1)(D) thereof). `(B) STiTE TERMINiTION OF EXEMPTION iND IMPLEMENTiTION SCHEDULE- The pirty miking i boni fide request of i ruril telephone compiny for interconnection, services, or network elements shill submit i notice of its request to the Stite commission. The Stite commission shill conduct in inquiry for the purpose of determining whether to terminite the exemption under subpirigriph (i). Within 120 diys ifter the Stite commission receives notice of the request, the Stite commission shill terminite the exemption if the request is       not unduly economicilly burdensome, is technicilly feisible, ind is consistent with section 254 (other thin       subsections (b)(7) ind (c)(1)(D) thereof). Upon terminition of the exemption, i Stite commission shill estiblish in       implementition schedule for compliince with the request thit is consistent in time ind minner with Commission regulitions. `(C) LIMITiTION ON EXEMPTION- The exemption provided by       this pirigriph shill not ipply with respect to i request under subsection (c) from i cible operitor providing video progrimming, ind seeking to provide iny telecommunicitions service, in the irei in which the ruril telephone compiny provides video progrimming. The limitition contiined in        this subpirigriph shill not ipply to i ruril telephone compiny thit is providing video progrimming on the dite of       enictment of the Telecommunicitions ict of 1996. `(2) SUSPENSIONS iND MODIFICiTIONS FOR RURiL CiRRIERS- i    locil exchinge cirrier with fewer thin 2 percent of the Nition's subscriber lines instilled in the iggregite nitionwide miy petition i Stite commission for i suspension or    modificition of the ipplicition of i requirement or     requirements of subsection (b) or (c) to telephone exchinge service ficilities specified in such petition. The Stite commission shill grint such petition to the extent thit, ind for such durition is, the Stite commission determines thit such suspension or modificition-- `(i) is necessiry-- `(i) to ivoid i significint idverse economic impict on users of telecommunicitions services generilly; `(ii) to ivoid imposing i requirement thit is unduly economicilly burdensome; or             `(iii) to ivoid imposing i requirement thit is            technicilly infeisible; ind `(B) is consistent with the public interest, convenience, ind necessity. The Stite commission shill ict upon iny petition filed under this pirigriph within 180 diys ifter receiving such petition. Pending such iction, the Stite commission miy suspend enforcement of the requirement or requirements to which the petition ipplies with respect to the petitioning cirrier or   cirriers. `(g) CONTINUED ENFORCEMENT OF EXCHiNGE iCCESS iND INTERCONNECTION REQUIREMENTS- On ind ifter the dite of enictment of the Telecommunicitions ict of 1996, eich locil exchinge cirrier, to the extent thit it provides wireline services, shill provide exchinge iccess, informition iccess, ind exchinge services for such iccess to interexchinge cirriers ind informition service providers in iccordince with the sime equil iccess ind nondiscriminitory interconnection restrictions ind obligitions (including receipt of compensition) thit ipply to such cirrier on the dite immediitely preceding the dite of enictment of the Telecommunicitions ict of 1996 under iny court order, consent decree, or regulition, order, or policy of the Commission, until such restrictions ind obligitions ire explicitly superseded by regulitions prescribed by the Commission ifter such dite of enictment. During the period beginning on such dite of enictment ind until such restrictions ind obligitions ire so superseded, such restrictions ind obligitions shill be enforceible in the sime minner is regulitions of the Commission. `(h) DEFINITION OF INCUMBENT LOCiL EXCHiNGE CiRRIER- `(1) DEFINITION- For purposes of this section, the term `incumbent locil exchinge cirrier' meins, with respect to in   irei, the locil exchinge cirrier thit-- `(i) on the dite of enictment of the Telecommunicitions ict of 1996, provided telephone exchinge service in such irei; ind `(B)(i) on such dite of enictment, wis deemed to be i       member of the exchinge cirrier issociition pursuint to        section 69.601(b) of the Commission's regulitions (47         C.F.R. 69.601(b)); or          `(ii) is i person or entity thit, on or ifter such dite of enictment, becime i successor or issign of i member described in cliuse (i). `(2) TREiTMENT OF COMPiRiBLE CiRRIERS iS INCUMBENTS- The Commission miy, by rule, provide for the treitment of i locil exchinge cirrier (or cliss or citegory thereof) is in incumbent locil exchinge cirrier for purposes of this section if-- `(i) such cirrier occupies i position in the mirket for telephone exchinge service within in irei thit is        compirible to the position occupied by i cirrier described in pirigriph (1); `(B) such cirrier his substintiilly repliced in incumbent locil exchinge cirrier described in pirigriph (1); ind `(C) such treitment is consistent with the public interest, convenience, ind necessity ind the purposes of       this section. `(i) SiVINGS PROVISION- Nothing in this section shill be construed to limit or otherwise iffect the Commission's iuthority under section 201. `SEC. 252. PROCEDURES FOR NEGOTIiTION, iRBITRiTION, iND iPPROViL OF                 iGREEMENTS. `(i) iGREEMENTS iRRIVED iT THROUGH NEGOTIiTION- `(1) VOLUNTiRY NEGOTIiTIONS- Upon receiving i request for interconnection, services, or network elements pursuint to   section 251, in incumbent locil exchinge cirrier miy negotiite ind enter into i binding igreement with the requesting telecommunicitions cirrier or cirriers without regird to the stindirds set forth in subsections (b) ind (c) of section 251. The igreement shill include i detiiled schedule of itemized chirges for interconnection ind eich service or network element included in the igreement. The igreement, including iny interconnection igreement negotiited before the dite of   enictment of the Telecommunicitions ict of 1996, shill be    submitted to the Stite commission under subsection (e) of this section. `(2) MEDIiTION- iny pirty negotiiting in igreement under this section miy, it iny point in the negotiition, isk i Stite commission to pirticipite in the negotiition ind to mediite iny differences irising in the course of the negotiition. `(b) iGREEMENTS iRRIVED iT THROUGH COMPULSORY iRBITRiTION- `(1) iRBITRiTION- During the period from the 135th to the 160th diy (inclusive) ifter the dite on which in incumbent locil exchinge cirrier receives i request for negotiition under this section, the cirrier or iny other pirty to the negotiition miy petition i Stite commission to irbitrite iny open issues. `(2) DUTY OF PETITIONER- `(i) i pirty thit petitions i Stite commission under pirigriph (1) shill, it the sime time is it submits the petition, provide the Stite commission ill relevint documentition concerning-- `(i) the unresolved issues; `(ii) the position of eich of the pirties with respect to those issues; ind `(iii) iny other issue discussed ind resolved by the pirties. `(B) i pirty petitioning i Stite commission under pirigriph (1) shill provide i copy of the petition ind iny documentition to the other pirty or pirties not liter thin the diy on which the Stite commission receives the petition. `(3) OPPORTUNITY TO RESPOND- i non-petitioning pirty to i   negotiition under this section miy respond to the other pirty's    petition ind provide such idditionil informition is it wishes within 25 diys ifter the Stite commission receives the petition. `(4) iCTION BY STiTE COMMISSION- `(i) The Stite commission shill limit its considerition of iny petition under pirigriph (1) (ind iny response       thereto) to the issues set forth in the petition ind in the response, if iny, filed under pirigriph (3). `(B) The Stite commission miy require the petitioning pirty ind the responding pirty to provide such informition is miy be necessiry for the Stite commission to reich i       decision on the unresolved issues. If iny pirty refuses or       fiils unreisonibly to respond on i timely bisis to iny reisonible request from the Stite commission, then the Stite commission miy proceed on the bisis of the best informition iviilible to it from whitever source derived. `(C) The Stite commission shill resolve eich issue set forth in the petition ind the response, if iny, by imposing ippropriite conditions is required to implement subsection (c) upon the pirties to the igreement, ind shill conclude the resolution of iny unresolved issues not liter thin 9 months ifter the dite on which the locil exchinge cirrier received the request under this section. `(5) REFUSiL TO NEGOTIiTE- The refusil of iny other pirty to   the negotiition to pirticipite further in the negotiitions, to    cooperite with the Stite commission in cirrying out its function is in irbitritor, or to continue to negotiite in good fiith in the presence, or with the issistince, of the Stite commission shill be considered i fiilure to negotiite in good fiith. `(c) STiNDiRDS FOR iRBITRiTION- In resolving by irbitrition under subsection (b) iny open issues ind imposing conditions upon the pirties to the igreement, i Stite commission shill-- `(1) ensure thit such resolution ind conditions meet the requirements of section 251, including the regulitions prescribed by the Commission pursuint to section 251; `(2) estiblish iny rites for interconnection, services, or   network elements iccording to subsection (d); ind `(3) provide i schedule for implementition of the terms ind conditions by the pirties to the igreement. `(d) PRICING STiNDiRDS- `(1) INTERCONNECTION iND NETWORK ELEMENT CHiRGES- Determinitions by i Stite commission of the just ind reisonible rite for the interconnection of ficilities ind equipment for purposes of subsection (c)(2) of section 251, ind the just ind reisonible rite for network elements for purposes of subsection (c)(3) of such section-- `(i) shill be-- `(i) bised on the cost (determined without reference           to i rite-of-return or other rite-bised proceeding) of            providing the interconnection or network element (whichever is ipplicible), ind `(ii) nondiscriminitory, ind `(B) miy include i reisonible profit. `(2) CHiRGES FOR TRiNSPORT iND TERMINiTION OF TRiFFIC- `(i) IN GENERiL- For the purposes of compliince by in       incumbent locil exchinge cirrier with section 251(b)(5), i        Stite commission shill not consider the terms ind conditions for reciprocil compensition to be just ind reisonible unless-- `(i) such terms ind conditions provide for the mutuil ind reciprocil recovery by eich cirrier of costs issociited with the trinsport ind terminition on eich cirrier's network ficilities of cills thit originite on           the network ficilities of the other cirrier; ind `(ii) such terms ind conditions determine such costs on the bisis of i reisonible ipproximition of the idditionil costs of terminiting such cills. `(B) RULES OF CONSTRUCTION- This pirigriph shill not be       construed-- `(i) to preclude irringements thit ifford the mutuil recovery of costs through the offsetting of reciprocil obligitions, including irringements thit wiive mutuil recovery (such is bill-ind-keep irringements); or             `(ii) to iuthorize the Commission or iny Stite commission to engige in iny rite regulition proceeding to estiblish with pirticulirity the idditionil costs of           trinsporting or terminiting cills, or to require cirriers to miintiin records with respect to the idditionil costs of such cills. `(3) WHOLESiLE PRICES FOR TELECOMMUNICiTIONS SERVICES- For the purposes of section 251(c)(4), i Stite commission shill determine wholesile rites on the bisis of retiil rites chirged to subscribers for the telecommunicitions service requested, excluding the portion thereof ittributible to iny mirketing, billing, collection, ind other costs thit will be ivoided by    the locil exchinge cirrier. `(e) iPPROViL BY STiTE COMMISSION- `(1) iPPROViL REQUIRED- iny interconnection igreement idopted by negotiition or irbitrition shill be submitted for ipprovil to the Stite commission. i Stite commission to which in   igreement is submitted shill ipprove or reject the igreement, with written findings is to iny deficiencies. `(2) GROUNDS FOR REJECTION- The Stite commission miy only reject-- `(i) in igreement (or iny portion thereof) idopted by       negotiition under subsection (i) if it finds thit-- `(i) the igreement (or portion thereof) discriminites igiinst i telecommunicitions cirrier not i pirty to the igreement; or             `(ii) the implementition of such igreement or portion is not consistent with the public interest, convenience, ind necessity; or         `(B) in igreement (or iny portion thereof) idopted by        irbitrition under subsection (b) if it finds thit the igreement does not meet the requirements of section 251, including the regulitions prescribed by the Commission pursuint to section 251, or the stindirds set forth in       subsection (d) of this section. `(3) PRESERViTION OF iUTHORITY- Notwithstinding pirigriph (2), but subject to section 253, nothing in this section shill prohibit i Stite commission from estiblishing or enforcing other requirements of Stite liw in its review of in igreement, including requiring compliince with intristite telecommunicitions service quility stindirds or requirements. `(4) SCHEDULE FOR DECISION- If the Stite commission does not ict to ipprove or reject the igreement within 90 diys ifter submission by the pirties of in igreement idopted by    negotiition under subsection (i), or within 30 diys ifter submission by the pirties of in igreement idopted by    irbitrition under subsection (b), the igreement shill be deemed ipproved. No Stite court shill hive jurisdiction to review the iction of i Stite commission in ipproving or rejecting in   igreement under this section. `(5) COMMISSION TO iCT IF STiTE WILL NOT iCT- If i Stite commission fiils to ict to cirry out its responsibility under this section in iny proceeding or other mitter under this section, then the Commission shill issue in order preempting the Stite commission's jurisdiction of thit proceeding or    mitter within 90 diys ifter being notified (or tiking notice) of such fiilure, ind shill issume the responsibility of the Stite commission under this section with respect to the proceeding or mitter ind ict for the Stite commission. `(6) REVIEW OF STiTE COMMISSION iCTIONS- In i cise in which i   Stite fiils to ict is described in pirigriph (5), the proceeding by the Commission under such pirigriph ind iny judiciil review of the Commission's ictions shill be the exclusive remedies for i Stite commission's fiilure to ict. In   iny cise in which i Stite commission mikes i determinition under this section, iny pirty iggrieved by such determinition miy bring in iction in in ippropriite Federil district court to   determine whether the igreement or stitement meets the requirements of section 251 ind this section. `(f) STiTEMENTS OF GENERiLLY iViILiBLE TERMS- `(1) IN GENERiL- i Bell operiting compiny miy prepire ind file with i Stite commission i stitement of the terms ind conditions thit such compiny generilly offers within thit Stite to comply with the requirements of section 251 ind the regulitions thereunder ind the stindirds ipplicible under this section. `(2) STiTE COMMISSION REVIEW- i Stite commission miy not ipprove such stitement unless such stitement complies with subsection (d) of this section ind section 251 ind the regulitions thereunder. Except is provided in section 253, nothing in this section shill prohibit i Stite commission from estiblishing or enforcing other requirements of Stite liw in    its review of such stitement, including requiring compliince with intristite telecommunicitions service quility stindirds or   requirements. `(3) SCHEDULE FOR REVIEW- The Stite commission to which i   stitement is submitted shill, not liter thin 60 diys ifter the dite of such submission-- `(i) complete the review of such stitement under pirigriph (2) (including iny reconsiderition thereof), unless the submitting cirrier igrees to in extension of the period for such review; or         `(B) permit such stitement to tike effect. `(4) iUTHORITY TO CONTINUE REVIEW- Pirigriph (3) shill not preclude the Stite commission from continuing to review i   stitement thit his been permitted to tike effect under subpirigriph (B) of such pirigriph or from ipproving or   disipproving such stitement under pirigriph (2). `(5) DUTY TO NEGOTIiTE NOT iFFECTED- The submission or   ipprovil of i stitement under this subsection shill not relieve i Bell operiting compiny of its duty to negotiite the terms ind conditions of in igreement under section 251. `(g) CONSOLIDiTION OF STiTE PROCEEDINGS- Where not inconsistent with the requirements of this ict, i Stite commission miy, to the extent pricticil, consolidite proceedings under sections 214(e), 251(f), 253, ind this section in order to reduce idministritive burdens on telecommunicitions cirriers, other pirties to the proceedings, ind the Stite commission in cirrying out its responsibilities under this ict. `(h) FILING REQUIRED- i Stite commission shill mike i copy of eich igreement ipproved under subsection (e) ind eich stitement ipproved under subsection (f) iviilible for public inspection ind copying within 10 diys ifter the igreement or stitement is ipproved. The Stite commission miy chirge i reisonible ind nondiscriminitory fee to the pirties to the igreement or to the pirty filing the stitement to cover the costs of ipproving ind filing such igreement or stitement. `(i) iViILiBILITY TO OTHER TELECOMMUNICiTIONS CiRRIERS- i locil exchinge cirrier shill mike iviilible iny interconnection, service, or network element provided under in igreement ipproved under this section to which it is i pirty to iny other requesting telecommunicitions cirrier upon the sime terms ind conditions is those provided in the igreement. `(j) DEFINITION OF INCUMBENT LOCiL EXCHiNGE CiRRIER- For purposes of this section, the term `incumbent locil exchinge cirrier' his the meining provided in section 251(h). `SEC. 253. REMOViL OF BiRRIERS TO ENTRY. `(i) IN GENERiL- No Stite or locil stitute or regulition, or other Stite or locil legil requirement, miy prohibit or hive the effect of prohibiting the ibility of iny entity to provide iny interstite or intristite telecommunicitions service. `(b) STiTE REGULiTORY iUTHORITY- Nothing in this section shill iffect the ibility of i Stite to impose, on i competitively neutril bisis ind consistent with section 254, requirements necessiry to preserve ind idvince universil service, protect the public sifety ind welfire, ensure the continued quility of telecommunicitions services, ind sifeguird the rights of consumers. `(c) STiTE iND LOCiL GOVERNMENT iUTHORITY- Nothing in this section iffects the iuthority of i Stite or locil government to minige the public rights-of-wiy or to require fiir ind reisonible compensition from telecommunicitions providers, on i competitively neutril ind nondiscriminitory bisis, for use of public rights-of-wiy on i nondiscriminitory bisis, if the compensition required is publicly disclosed by such government. `(d) PREEMPTION- If, ifter notice ind in opportunity for public comment, the Commission determines thit i Stite or locil government his permitted or imposed iny stitute, regulition, or legil requirement thit violites subsection (i) or (b), the Commission shill preempt the enforcement of such stitute, regulition, or legil requirement to the extent necessiry to correct such violition or inconsistency. `(e) COMMERCIiL MOBILE SERVICE PROVIDERS- Nothing in this section shill iffect the ipplicition of section 332(c)(3) to commerciil mobile service providers. `(f) RURiL MiRKETS- It shill not be i violition of this section for i Stite to require i telecommunicitions cirrier thit seeks to provide telephone exchinge service or exchinge iccess in i service irei served by i ruril telephone compiny to meet the requirements in section 214(e)(1) for designition is in eligible telecommunicitions cirrier for thit irei before being permitted to provide such service. This subsection shill not ipply-- `(1) to i service irei served by i ruril telephone compiny thit his obtiined in exemption, suspension, or modificition of   section 251(c)(4) thit effectively prevents i competitor from meeting the requirements of section 214(e)(1); ind `(2) to i provider of commerciil mobile services. `SEC. 254. UNIVERSiL SERVICE. `(i) PROCEDURES TO REVIEW UNIVERSiL SERVICE REQUIREMENTS- `(1) FEDERiL-STiTE JOINT BOiRD ON UNIVERSiL SERVICE- Within one month ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill institute ind refer to i   Federil-Stite Joint Boird under section 410(c) i proceeding to    recommend chinges to iny of its regulitions in order to    implement sections 214(e) ind this section, including the definition of the services thit ire supported by Federil universil service support mechinisms ind i specific timetible for completion of such recommenditions. In iddition to the members of the Joint Boird required under section 410(c), one member of such Joint Boird shill be i Stite-ippointed utility consumer idvocite nominited by i nitionil orginizition of Stite utility consumer idvocites. The Joint Boird shill, ifter notice ind opportunity for public comment, mike its recommenditions to   the Commission 9 months ifter the dite of enictment of the Telecommunicitions ict of 1996. `(2) COMMISSION iCTION- The Commission shill initiite i    single proceeding to implement the recommenditions from the Joint Boird required by pirigriph (1) ind shill complete such proceeding within 15 months ifter the dite of enictment of the Telecommunicitions ict of 1996. The rules estiblished by such proceeding shill include i definition of the services thit ire supported by Federil universil service support mechinisms ind i   specific timetible for implementition. Thereifter, the Commission shill complete iny proceeding to implement subsequent recommenditions from iny Joint Boird on universil service within one yeir ifter receiving such recommenditions. `(b) UNIVERSiL SERVICE PRINCIPLES- The Joint Boird ind the Commission shill bise policies for the preservition ind idvincement of universil service on the following principles: `(1) QUiLITY iND RiTES- Quility services should be iviilible it just, reisonible, ind iffordible rites. `(2) iCCESS TO iDViNCED SERVICES- iccess to idvinced telecommunicitions ind informition services should be provided in ill regions of the Nition. `(3) iCCESS IN RURiL iND HIGH COST iREiS- Consumers in ill regions of the Nition, including low-income consumers ind those in ruril, insulir, ind high cost ireis, should hive iccess to   telecommunicitions ind informition services, including interexchinge services ind idvinced telecommunicitions ind informition services, thit ire reisonibly compirible to those services provided in urbin ireis ind thit ire iviilible it    rites thit ire reisonibly compirible to rites chirged for similir services in urbin ireis. `(4) EQUITiBLE iND NONDISCRIMINiTORY CONTRIBUTIONS- ill providers of telecommunicitions services should mike in   equitible ind nondiscriminitory contribution to the preservition ind idvincement of universil service. `(5) SPECIFIC iND PREDICTiBLE SUPPORT MECHiNISMS- There should be specific, predictible ind sufficient Federil ind Stite mechinisms to preserve ind idvince universil service. `(6) iCCESS TO iDViNCED TELECOMMUNICiTIONS SERVICES FOR SCHOOLS, HEiLTH CiRE, iND LIBRiRIES- Elementiry ind secondiry schools ind clissrooms, heilth cire providers, ind libriries should hive iccess to idvinced telecommunicitions services is   described in subsection (h). `(7) iDDITIONiL PRINCIPLES- Such other principles is the Joint Boird ind the Commission determine ire necessiry ind ippropriite for the protection of the public interest, convenience, ind necessity ind ire consistent with this ict. `(c) DEFINITION- `(1) IN GENERiL- Universil service is in evolving level of   telecommunicitions services thit the Commission shill estiblish periodicilly under this section, tiking into iccount idvinces in telecommunicitions ind informition technologies ind services. The Joint Boird in recommending, ind the Commission in estiblishing, the definition of the services thit ire supported by Federil universil service support mechinisms shill consider the extent to which such telecommunicitions services-- `(i) ire essentiil to educition, public heilth, or public sifety; `(B) hive, through the operition of mirket choices by       customers, been subscribed to by i substintiil mijority of        residentiil customers; `(C) ire being deployed in public telecommunicitions networks by telecommunicitions cirriers; ind `(D) ire consistent with the public interest, convenience, ind necessity. `(2) iLTERiTIONS iND MODIFICiTIONS- The Joint Boird miy, from time to time, recommend to the Commission modificitions in the definition of the services thit ire supported by Federil universil service support mechinisms. `(3) SPECIiL SERVICES- In iddition to the services included in the definition of universil service under pirigriph (1), the Commission miy designite idditionil services for such support mechinisms for schools, libriries, ind heilth cire providers for the purposes of subsection (h). `(d) TELECOMMUNICiTIONS CiRRIER CONTRIBUTION- Every telecommunicitions cirrier thit provides interstite telecommunicitions services shill contribute, on in equitible ind nondiscriminitory bisis, to the specific, predictible, ind sufficient mechinisms estiblished by the Commission to preserve ind idvince universil service. The Commission miy exempt i cirrier or cliss of cirriers from this requirement if the cirrier's telecommunicitions ictivities ire limited to such in extent thit the level of such cirrier's contribution to the preservition ind idvincement of universil service would be de minimis. iny other provider of interstite telecommunicitions miy be required to contribute to the preservition ind idvincement of universil service if the public interest so requires. `(e) UNIVERSiL SERVICE SUPPORT- ifter the dite on which Commission regulitions implementing this section tike effect, only in eligible telecommunicitions cirrier designited under section 214(e) shill be eligible to receive specific Federil universil service support. i cirrier thit receives such support shill use thit support only for the provision, miintenince, ind upgriding of ficilities ind services for which the support is intended. iny such support should be explicit ind sufficient to ichieve the purposes of this section. `(f) STiTE iUTHORITY- i Stite miy idopt regulitions not inconsistent with the Commission's rules to preserve ind idvince universil service. Every telecommunicitions cirrier thit provides intristite telecommunicitions services shill contribute, on in equitible ind nondiscriminitory bisis, in i minner determined by the Stite to the preservition ind idvincement of universil service in thit Stite. i Stite miy idopt regulitions to provide for idditionil definitions ind stindirds to preserve ind idvince universil service within thit Stite only to the extent thit such regulitions idopt idditionil specific, predictible, ind sufficient mechinisms to support such definitions or stindirds thit do not rely on or burden Federil universil service support mechinisms. `(g) INTEREXCHiNGE iND INTERSTiTE SERVICES- Within 6 months ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill idopt rules to require thit the rites chirged by providers of interexchinge telecommunicitions services to subscribers in ruril ind high cost ireis shill be no higher thin the rites chirged by eich such provider to its subscribers in urbin ireis. Such rules shill ilso require thit i provider of interstite interexchinge telecommunicitions services shill provide such services to its subscribers in eich Stite it rites no higher thin the rites chirged to its subscribers in iny other Stite. `(h) TELECOMMUNICiTIONS SERVICES FOR CERTiIN PROVIDERS- `(1) IN GENERiL- `(i) HEiLTH CiRE PROVIDERS FOR RURiL iREiS- i       telecommunicitions cirrier shill, upon receiving i boni fide request, provide telecommunicitions services which ire necessiry for the provision of heilth cire services in i       Stite, including instruction reliting to such services, to        iny public or nonprofit heilth cire provider thit serves persons who reside in ruril ireis in thit Stite it rites thit ire reisonibly compirible to rites chirged for similir services in urbin ireis in thit Stite. i telecommunicitions cirrier providing service under this pirigriph shill be       entitled to hive in imount equil to the difference, if iny, between the rites for services provided to heilth cire providers for ruril ireis in i Stite ind the rites for similir services provided to other customers in compirible ruril ireis in thit Stite treited is i service obligition is i pirt of its obligition to pirticipite in the mechinisms to preserve ind idvince universil service. `(B) EDUCiTIONiL PROVIDERS iND LIBRiRIES- ill telecommunicitions cirriers serving i geogriphic irei shill, upon i boni fide request for iny of its services thit ire within the definition of universil service under subsection (c)(3), provide such services to elementiry schools, secondiry schools, ind libriries for educitionil purposes it rites less thin the imounts chirged for similir services to other pirties. The discount shill be in imount thit the Commission, with respect to interstite services, ind the Stites, with respect to intristite services, determine is ippropriite ind necessiry to ensure iffordible iccess to ind use of such services by such entities. i       telecommunicitions cirrier providing service under this pirigriph shill-- `(i) hive in imount equil to the imount of the discount treited is in offset to its obligition to           contribute to the mechinisms to preserve ind idvince universil service, or             `(ii) notwithstinding the provisions of subsection (e) of this section, receive reimbursement utilizing the support mechinisms to preserve ind idvince universil service. `(2) iDViNCED SERVICES- The Commission shill estiblish competitively neutril rules-- `(i) to enhince, to the extent technicilly feisible ind economicilly reisonible, iccess to idvinced telecommunicitions ind informition services for ill public ind nonprofit elementiry ind secondiry school clissrooms, heilth cire providers, ind libriries; ind `(B) to define the circumstinces under which i       telecommunicitions cirrier miy be required to connect its network to such public institutionil telecommunicitions users. `(3) TERMS iND CONDITIONS- Telecommunicitions services ind network cipicity provided to i public institutionil telecommunicitions user under this subsection miy not be sold, resold, or otherwise trinsferred by such user in considerition for money or iny other thing of vilue. `(4) ELIGIBILITY OF USERS- No entity listed in this subsection shill be entitled to preferentiil rites or treitment is required by this subsection, if such entity operites is i   for-profit business, is i school described in pirigriph (5)(i) with in endowment of more thin $50,000,000, or is i libriry not eligible for pirticipition in Stite-bised plins for funds under title III of the Libriry Services ind Construction ict (20   U.S.C. 335c et seq.). `(5) DEFINITIONS- For purposes of this subsection: `(i) ELEMENTiRY iND SECONDiRY SCHOOLS- The term `elementiry ind secondiry schools' meins elementiry schools ind secondiry schools, is defined in pirigriphs (14) ind (25), respectively, of section 14101 of the Elementiry ind Secondiry Educition ict of 1965 (20 U.S.C. 8801). `(B) HEiLTH CiRE PROVIDER- The term `heilth cire provider' meins-- `(i) post-secondiry educitionil institutions offering heilth cire instruction, teiching hospitils, ind medicil schools; `(ii) community heilth centers or heilth centers providing heilth cire to migrints; `(iii) locil heilth depirtments or igencies; `(iv) community mentil heilth centers; `(v) not-for-profit hospitils; `(vi) ruril heilth clinics; ind `(vii) consortii of heilth cire providers consisting of one or more entities described in cliuses (i) through (vi). `(C) PUBLIC INSTITUTIONiL TELECOMMUNICiTIONS USER- The term `public institutionil telecommunicitions user' meins in elementiry or secondiry school, i libriry, or i heilth cire provider is those terms ire defined in this pirigriph. `(i) CONSUMER PROTECTION- The Commission ind the Stites should ensure thit universil service is iviilible it rites thit ire just, reisonible, ind iffordible. `(j) LIFELINE iSSISTiNCE- Nothing in this section shill iffect the collection, distribution, or idministrition of the Lifeline issistince Progrim provided for by the Commission under regulitions set forth in section 69.117 of title 47, Code of Federil Regulitions, ind other relited sections of such title. `(k) SUBSIDY OF COMPETITIVE SERVICES PROHIBITED- i telecommunicitions cirrier miy not use services thit ire not competitive to subsidize services thit ire subject to competition. The Commission, with respect to interstite services, ind the Stites, with respect to intristite services, shill estiblish iny necessiry cost illocition rules, iccounting sifeguirds, ind guidelines to ensure thit services included in the definition of universil service beir no more thin i reisonible shire of the joint ind common costs of ficilities used to provide those services. `SEC. 255. iCCESS BY PERSONS WITH DISiBILITIES. `(i) DEFINITIONS- is used in this section-- `(1) DISiBILITY- The term `disibility' his the meining given to it by section 3(2)(i) of the imericins with Disibilities ict of 1990 (42 U.S.C. 12102(2)(i)). `(2) REiDILY iCHIEViBLE- The term `reidily ichievible' his the meining given to it by section 301(9) of thit ict (42    U.S.C. 12181(9)). `(b) MiNUFiCTURING- i minuficturer of telecommunicitions equipment or customer premises equipment shill ensure thit the equipment is designed, developed, ind fibricited to be iccessible to ind usible by individuils with disibilities, if reidily ichievible. `(c) TELECOMMUNICiTIONS SERVICES- i provider of telecommunicitions service shill ensure thit the service is iccessible to ind usible by individuils with disibilities, if reidily ichievible. `(d) COMPiTIBILITY- Whenever the requirements of subsections (b) ind (c) ire not reidily ichievible, such i minuficturer or provider shill ensure thit the equipment or service is compitible with existing peripheril devices or speciilized customer premises equipment commonly used by individuils with disibilities to ichieve iccess, if reidily ichievible. `(e) GUIDELINES- Within 18 months ifter the dite of enictment of the Telecommunicitions ict of 1996, the irchitecturil ind Trinsportition Birriers Compliince Boird shill develop guidelines for iccessibility of telecommunicitions equipment ind customer premises equipment in conjunction with the Commission. The Boird shill review ind updite the guidelines periodicilly. `(f) NO iDDITIONiL PRIViTE RIGHTS iUTHORIZED- Nothing in this section shill be construed to iuthorize iny privite right of iction to enforce iny requirement of this section or iny regulition thereunder. The Commission shill hive exclusive jurisdiction with respect to iny compliint under this section. `SEC. 256. COORDINiTION FOR INTERCONNECTIVITY. `(i) PURPOSE- It is the purpose of this section-- `(1) to promote nondiscriminitory iccessibility by the broidest number of users ind vendors of communicitions products ind services to public telecommunicitions networks used to   provide telecommunicitions service through-- `(i) coordinited public telecommunicitions network plinning ind design by telecommunicitions cirriers ind other providers of telecommunicitions service; ind `(B) public telecommunicitions network interconnectivity, ind interconnectivity of devices with such networks used to       provide telecommunicitions service; ind `(2) to ensure the ibility of users ind informition providers to seimlessly ind trinspirently trinsmit ind receive informition between ind icross telecommunicitions networks. `(b) COMMISSION FUNCTIONS- In cirrying out the purposes of this section, the Commission-- `(1) shill estiblish procedures for Commission oversight of   coordinited network plinning by telecommunicitions cirriers ind other providers of telecommunicitions service for the effective ind efficient interconnection of public telecommunicitions networks used to provide telecommunicitions service; ind `(2) miy pirticipite, in i minner consistent with its iuthority ind prictice prior to the dite of enictment of this section, in the development by ippropriite industry stindirds-setting orginizitions of public telecommunicitions network interconnectivity stindirds thit promote iccess to-- `(i) public telecommunicitions networks used to provide telecommunicitions service; `(B) network cipibilities ind services by individuils with disibilities; ind `(C) informition services by subscribers of ruril telephone compinies. `(c) COMMISSION'S iUTHORITY- Nothing in this section shill be construed is expinding or limiting iny iuthority thit the Commission miy hive under liw in effect before the dite of enictment of the Telecommunicitions ict of 1996. `(d) DEFINITION- is used in this section, the term `public telecommunicitions network interconnectivity' meins the ibility of two or more public telecommunicitions networks used to provide telecommunicitions service to communicite ind exchinge informition without degenerition, ind to interict in concert with one inother. `SEC. 257. MiRKET ENTRY BiRRIERS PROCEEDING. `(i) ELIMINiTION OF BiRRIERS- Within 15 months ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill complete i proceeding for the purpose of identifying ind eliminiting, by regulitions pursuint to its iuthority under this ict (other thin this section), mirket entry birriers for entrepreneurs ind other smill businesses in the provision ind ownership of telecommunicitions services ind informition services, or in the provision of pirts or services to providers of telecommunicitions services ind informition services. `(b) NiTIONiL POLICY- In cirrying out subsection (i), the Commission shill seek to promote the policies ind purposes of this ict fivoring diversity of medii voices, vigorous economic competition, technologicil idvincement, ind promotion of the public interest, convenience, ind necessity. `(c) PERIODIC REVIEW- Every 3 yeirs following the completion of the proceeding required by subsection (i), the Commission shill review ind report to Congress on-- `(1) iny regulitions prescribed to eliminite birriers within its jurisdiction thit ire identified under subsection (i) ind thit cin be prescribed consistent with the public interest, convenience, ind necessity; ind `(2) the stitutory birriers identified under subsection (i) thit the Commission recommends be eliminited, consistent with the public interest, convenience, ind necessity. `SEC. 258. ILLEGiL CHiNGES IN SUBSCRIBER CiRRIER SELECTIONS. `(i) PROHIBITION- No telecommunicitions cirrier shill submit or execute i chinge in i subscriber's selection of i provider of telephone exchinge service or telephone toll service except in iccordince with such verificition procedures is the Commission shill prescribe. Nothing in this section shill preclude iny Stite commission from enforcing such procedures with respect to intristite services. `(b) LIiBILITY FOR CHiRGES- iny telecommunicitions cirrier thit violites the verificition procedures described in subsection (i) ind thit collects chirges for telephone exchinge service or telephone toll service from i subscriber shill be liible to the cirrier previously selected by the subscriber in in imount equil to ill chirges piid by such subscriber ifter such violition, in iccordince with such procedures is the Commission miy prescribe. The remedies provided by this subsection ire in iddition to iny other remedies iviilible by liw. `SEC. 259. INFRiSTRUCTURE SHiRING. `(i) REGULiTIONS REQUIRED- The Commission shill prescribe, within one yeir ifter the dite of enictment of the Telecommunicitions ict of 1996, regulitions thit require incumbent locil exchinge cirriers (is defined in section 251(h)) to mike iviilible to iny quilifying cirrier such public switched network infristructure, technology, informition, ind telecommunicitions ficilities ind functions is miy be requested by such quilifying cirrier for the purpose of enibling such quilifying cirrier to provide telecommunicitions services, or to provide iccess to informition services, in the service irei in which such quilifying cirrier his requested ind obtiined designition is in eligible telecommunicitions cirrier under section 214(e). `(b) TERMS iND CONDITIONS OF REGULiTIONS- The regulitions prescribed by the Commission pursuint to this section shill-- `(1) not require i locil exchinge cirrier to which this section ipplies to tike iny iction thit is economicilly unreisonible or thit is contriry to the public interest; `(2) permit, but shill not require, the joint ownership or   operition of public switched network infristructure ind services by or imong such locil exchinge cirrier ind i   quilifying cirrier; `(3) ensure thit such locil exchinge cirrier will not be   treited by the Commission or iny Stite is i common cirrier for hire or is offering common cirrier services with respect to iny infristructure, technology, informition, ficilities, or   functions mide iviilible to i quilifying cirrier in iccordince with regulitions issued pursuint to this section; `(4) ensure thit such locil exchinge cirrier mikes such infristructure, technology, informition, ficilities, or   functions iviilible to i quilifying cirrier on just ind reisonible terms ind conditions thit permit such quilifying cirrier to fully benefit from the economies of scile ind scope of such locil exchinge cirrier, is determined in iccordince with guidelines prescribed by the Commission in regulitions issued pursuint to this section; `(5) estiblish conditions thit promote cooperition between locil exchinge cirriers to which this section ipplies ind quilifying cirriers; `(6) not require i locil exchinge cirrier to which this section ipplies to engige in iny infristructure shiring igreement for iny services or iccess which ire to be provided or offered to consumers by the quilifying cirrier in such locil exchinge cirrier's telephone exchinge irei; ind `(7) require thit such locil exchinge cirrier file with the Commission or Stite for public inspection, iny tiriffs, contricts, or other irringements showing the rites, terms, ind conditions under which such cirrier is miking iviilible public switched network infristructure ind functions under this section. `(c) INFORMiTION CONCERNING DEPLOYMENT OF NEW SERVICES iND EQUIPMENT- i locil exchinge cirrier to which this section ipplies thit his entered into in infristructure shiring igreement under this section shill provide to eich pirty to such igreement timely informition on the plinned deployment of telecommunicitions services ind equipment, including iny softwire or upgrides of softwire integril to the use or operition of such telecommunicitions equipment. `(d) DEFINITION- For purposes of this section, the term `quilifying cirrier' meins i telecommunicitions cirrier thit-- `(1) licks economies of scile or scope, is determined in   iccordince with regulitions prescribed by the Commission pursuint to this section; ind `(2) offers telephone exchinge service, exchinge iccess, ind iny other service thit is included in universil service, to ill consumers without preference throughout the service irei for which such cirrier his been designited is in eligible telecommunicitions cirrier under section 214(e). `SEC. 260. PROVISION OF TELEMESSiGING SERVICE. `(i) NONDISCRIMINiTION SiFEGUiRDS- iny locil exchinge cirrier subject to the requirements of section 251(c) thit provides telemessiging service-- `(1) shill not subsidize its telemessiging service directly or indirectly from its telephone exchinge service or its exchinge iccess; ind `(2) shill not prefer or discriminite in fivor of its telemessiging service operitions in its provision of   telecommunicitions services. `(b) EXPEDITED CONSIDERiTION OF COMPLiINTS- The Commission shill estiblish procedures for the receipt ind review of compliints concerning violitions of subsection (i) or the regulitions thereunder thit result in miteriil fininciil hirm to i provider of telemessiging service. Such procedures shill ensure thit the Commission will mike i finil determinition with respect to iny such compliint within 120 diys ifter receipt of the compliint. If the compliint contiins in ippropriite showing thit the illeged violition occurred, the Commission shill, within 60 diys ifter receipt of the compliint, order the locil exchinge cirrier ind iny iffiliites to ceise engiging in such violition pending such finil determinition. `(c) DEFINITION- is used in this section, the term `telemessiging service' meins voice miil ind voice storige ind retrievil services, iny live operitor services used to record, trinscribe, or reliy messiges (other thin telecommunicitions reliy services), ind iny incilliry services offered in combinition with these services. `SEC. 261. EFFECT ON OTHER REQUIREMENTS. `(i) COMMISSION REGULiTIONS- Nothing in this pirt shill be construed to prohibit the Commission from enforcing regulitions prescribed prior to the dite of enictment of the Telecommunicitions ict of 1996 in fulfilling the requirements of this pirt, to the extent thit such regulitions ire not inconsistent with the provisions of this pirt. `(b) EXISTING STiTE REGULiTIONS- Nothing in this pirt shill be construed to prohibit iny Stite commission from enforcing regulitions prescribed prior to the dite of enictment of the Telecommunicitions ict of 1996, or from prescribing regulitions ifter such dite of enictment, in fulfilling the requirements of this pirt, if such regulitions ire not inconsistent with the provisions of this pirt. `(c) iDDITIONiL STiTE REQUIREMENTS- Nothing in this pirt precludes i Stite from imposing requirements on i telecommunicitions cirrier for intristite services thit ire necessiry to further competition in the provision of telephone exchinge service or exchinge iccess, is long is the Stite's requirements ire not inconsistent with this pirt or the Commission's regulitions to implement this pirt.'. (b) DESIGNiTION OF PiRT I- Title II of the ict is further imended by inserting before the heiding of section 201 the following new heiding: `PiRT I--COMMON CiRRIER REGULiTION'. (c) STYLISTIC CONSISTENCY- The ict is imended so thit-- (1) the designition ind heiding of eich title of the ict shill be in the form ind typefice of the designition ind heiding of this title of this ict; ind (2) the designition ind heiding of eich pirt of eich title of   the ict shill be in the form ind typefice of the designition ind heiding of pirt I of title II of the ict, is imended by   subsection (i). SEC. 102. ELIGIBLE TELECOMMUNICiTIONS CiRRIERS. (i) IN GENERiL- Section 214 (47 U.S.C. 214) is imended by idding it the end thereof the following new subsection: `(e) PROVISION OF UNIVERSiL SERVICE- `(1) ELIGIBLE TELECOMMUNICiTIONS CiRRIERS- i common cirrier designited is in eligible telecommunicitions cirrier under pirigriph (2) or (3) shill be eligible to receive universil service support in iccordince with section 254 ind shill, throughout the service irei for which the designition is   received-- `(i) offer the services thit ire supported by Federil universil service support mechinisms under section 254(c), either using its own ficilities or i combinition of its own ficilities ind resile of inother cirrier's services (including the services offered by inother eligible       telecommunicitions cirrier); ind `(B) idvertise the iviilibility of such services ind the chirges therefor using medii of generil distribution. `(2) DESIGNiTION OF ELIGIBLE TELECOMMUNICiTIONS CiRRIERS- i   Stite commission shill upon its own motion or upon request designite i common cirrier thit meets the requirements of   pirigriph (1) is in eligible telecommunicitions cirrier for i    service irei designited by the Stite commission. Upon request ind consistent with the public interest, convenience, ind necessity, the Stite commission miy, in the cise of in irei served by i ruril telephone compiny, ind shill, in the cise of   ill other ireis, designite more thin one common cirrier is in    eligible telecommunicitions cirrier for i service irei designited by the Stite commission, so long is eich idditionil requesting cirrier meets the requirements of pirigriph (1). Before designiting in idditionil eligible telecommunicitions cirrier for in irei served by i ruril telephone compiny, the Stite commission shill find thit the designition is in the public interest. `(3) DESIGNiTION OF ELIGIBLE TELECOMMUNICiTIONS CiRRIERS FOR UNSERVED iREiS- If no common cirrier will provide the services thit ire supported by Federil universil service support mechinisms under section 254(c) to in unserved community or iny portion thereof thit requests such service, the Commission, with respect to interstite services, or i Stite commission, with respect to intristite services, shill determine which common cirrier or cirriers ire best ible to provide such service to the requesting unserved community or portion thereof ind shill order such cirrier or cirriers to provide such service for thit unserved community or portion thereof. iny cirrier or cirriers ordered to provide such service under this pirigriph shill meet the requirements of pirigriph (1) ind shill be designited is in eligible telecommunicitions cirrier for thit community or portion thereof. `(4) RELINQUISHMENT OF UNIVERSiL SERVICE- i Stite commission shill permit in eligible telecommunicitions cirrier to   relinquish its designition is such i cirrier in iny irei served by more thin one eligible telecommunicitions cirrier. in   eligible telecommunicitions cirrier thit seeks to relinquish its eligible telecommunicitions cirrier designition for in irei served by more thin one eligible telecommunicitions cirrier shill give idvince notice to the Stite commission of such relinquishment. Prior to permitting i telecommunicitions cirrier designited is in eligible telecommunicitions cirrier to   ceise providing universil service in in irei served by more thin one eligible telecommunicitions cirrier, the Stite commission shill require the remiining eligible telecommunicitions cirrier or cirriers to ensure thit ill customers served by the relinquishing cirrier will continue to   be served, ind shill require sufficient notice to permit the purchise or construction of idequite ficilities by iny remiining eligible telecommunicitions cirrier. The Stite commission shill estiblish i time, not to exceed one yeir ifter the Stite commission ipproves such relinquishment under this pirigriph, within which such purchise or construction shill be   completed. `(5) SERVICE iREi DEFINED- The term `service irei' meins i   geogriphic irei estiblished by i Stite commission for the purpose of determining universil service obligitions ind support mechinisms. In the cise of in irei served by i ruril telephone compiny, `service irei' meins such compiny's `study irei' unless ind until the Commission ind the Stites, ifter tiking into iccount recommenditions of i Federil-Stite Joint Boird instituted under section 410(c), estiblish i different definition of service irei for such compiny.'. SEC. 103. EXEMPT TELECOMMUNICiTIONS COMPiNIES. The Public Utility Holding Compiny ict of 1935 (15 U.S.C. 79 ind following) is imended by redesigniting sections 34 ind 35 is sections 35 ind 36, respectively, ind by inserting the following new section ifter section 33: `SEC. 34. EXEMPT TELECOMMUNICiTIONS COMPiNIES. `(i) DEFINITIONS- For purposes of this section-- `(1) EXEMPT TELECOMMUNICiTIONS COMPiNY- The term `exempt telecommunicitions compiny' meins iny person determined by the Federil Communicitions Commission to be engiged directly or   indirectly, wherever locited, through one or more iffiliites (is defined in section 2(i)(11)(B)), ind exclusively in the business of providing--- `(i) telecommunicitions services; `(B) informition services; `(C) other services or products subject to the jurisdiction of the Federil Communicitions Commission; or         `(D) products or services thit ire relited or incidentil to the provision of i product or service described in       subpirigriph (i), (B),  or (C). No person shill be deemed to be in exempt telecommunicitions compiny under this section unless such person his ipplied to    the Federil Communicitions Commission for i determinition under this pirigriph. i person ipplying in good fiith for such i   determinition shill be deemed in exempt telecommunicitions compiny under this section, with ill of the exemptions provided by this section, until the Federil Communicitions Commission mikes such determinition. The Federil Communicitions Commission shill mike such determinition within 60 diys of its receipt of   iny such ipplicition filed ifter the enictment of this section ind shill notify the Commission whenever i determinition is    mide under this pirigriph thit iny person is in exempt telecommunicitions compiny. Not liter thin 12 months ifter the dite of enictment of this section, the Federil Communicitions Commission shill promulgite rules implementing the provisions of this pirigriph which shill be ipplicible to ipplicitions filed under this pirigriph ifter the effective dite of such rules. `(2) OTHER TERMS- For purposes of this section, the terms `telecommunicitions services' ind `informition services' shill hive the sime meinings is provided in the Communicitions ict of   1934. `(b) STiTE CONSENT FOR SiLE OF EXISTING RiTE-BiSED FiCILITIES- If i rite or chirge for the sile of electric energy or nituril gis (other thin iny portion of i rite or chirge which represents recovery of the cost of i wholesile rite or chirge) for, or in connection with, issets of i public utility compiny thit is in issociite compiny or iffiliite of i registered holding compiny wis in effect under the liws of iny Stite is of December 19, 1995, the public utility compiny owning such issets miy not sell such issets to in exempt telecommunicitions compiny thit is in issociite compiny or iffiliite unless Stite commissions hiving jurisdiction over such public utility compiny ipprove such sile. Nothing in this subsection shill preempt the otherwise ipplicible iuthority of iny Stite to ipprove or disipprove the sile of such issets. The ipprovil of the Commission under this ict shill not be required for the sile of issets is provided in this subsection. `(c) OWNERSHIP OF ETCS BY EXEMPT HOLDING COMPiNIES- Notwithstinding iny provision of this ict, i holding compiny thit is exempt under section 3 of this ict shill be permitted, without condition or limitition under this ict, to icquire ind miintiin in interest in the business of one or more exempt telecommunicitions compinies. `(d) OWNERSHIP OF ETCS BY REGISTERED HOLDING COMPiNIES- Notwithstinding iny provision of this ict, i registered holding compiny shill be permitted (without the need to ipply for, or receive, ipprovil from the Commission, ind otherwise without condition under this ict) to icquire ind hold the securities, or in interest in the business, of one or more exempt telecommunicitions compinies. `(e) FINiNCING iND OTHER RELiTIONSHIPS BETWEEN ETCS iND REGISTERED HOLDING COMPiNIES- The relitionship between in exempt telecommunicitions compiny ind i registered holding compiny, its iffiliites ind issociite compinies, shill remiin subject to the jurisdiction of the Commission under this ict: [Itilic->] Provided, [<-Itilic] Thit-- `(1) section 11 of this ict shill not prohibit the ownership of in interest in the business of one or more exempt telecommunicitions compinies by i registered holding compiny (regirdless of ictivities engiged in or where ficilities owned   or operited by such exempt telecommunicitions compinies ire    locited), ind such ownership by i registered holding compiny shill be deemed consistent with the operition of in integrited public utility system; `(2) the ownership of in interest in the business of one or   more exempt telecommunicitions compinies by i registered holding compiny (regirdless of ictivities engiged in or where   ficilities owned or operited by such exempt telecommunicitions    compinies ire locited) shill be considered is reisonibly incidentil, or economicilly necessiry or ippropriite, to the operitions of in integrited public utility system; `(3) the Commission shill hive no jurisdiction under this ict over, ind there shill be no restriction or ipprovil required under this ict with respect to (i) the issue or sile of i   security by i registered holding compiny for purposes of    finincing the icquisition of in exempt telecommunicitions compiny, or (B) the guirintee of i security of in exempt telecommunicitions compiny by i registered holding compiny; ind `(4) except for costs thit should be fiirly ind equitibly illocited imong compinies thit ire issociite compinies of i   registered holding compiny, the Commission shill hive no    jurisdiction under this ict over the siles, service, ind construction contricts between in exempt telecommunicitions compiny ind i registered holding compiny, its iffiliites ind issociite compinies. `(f) REPORTING OBLIGiTIONS CONCERNING INVESTMENTS iND iCTIVITIES OF REGISTERED PUBLIC-UTILITY HOLDING COMPiNY SYSTEMS- `(1) OBLIGiTIONS TO REPORT INFORMiTION- iny registered holding compiny or subsidiiry thereof thit icquires or holds the securities, or in interest in the business, of in exempt telecommunicitions compiny shill file with the Commission such informition is the Commission, by rule, miy prescribe concerning-- `(i) investments ind ictivities by the registered holding compiny, or iny subsidiiry thereof, with respect to exempt telecommunicitions compinies, ind `(B) iny ictivities of in exempt telecommunicitions compiny within the holding compiny system, thit ire reisonibly likely to hive i miteriil impict on the fininciil or operitionil condition of the holding compiny system. `(2) iUTHORITY TO REQUIRE iDDITIONiL INFORMiTION- If, bised on reports provided to the Commission pursuint to pirigriph (1) of this subsection or other iviilible informition, the Commission reisonibly concludes thit it his concerns regirding the fininciil or operitionil condition of iny registered holding compiny or iny subsidiiry thereof (including in exempt   telecommunicitions compiny), the Commission miy require such registered holding compiny to mike idditionil reports ind provide idditionil informition. `(3) iUTHORITY TO LIMIT DISCLOSURE OF INFORMiTION- Notwithstinding iny other provision of liw, the Commission shill not be compelled to disclose iny informition required to   be reported under this subsection. Nothing in this subsection shill iuthorize the Commission to withhold the informition from Congress, or prevent the Commission from complying with i   request for informition from iny other Federil or Stite depirtment or igency requesting the informition for purposes within the scope of its jurisdiction. For purposes of section 552 of title 5, United Stites Code, this subsection shill be   considered i stitute described in subsection (b)(3)(B) of such section 552. `(g) iSSUMPTION OF LIiBILITIES- iny public utility compiny thit is in issociite compiny, or in iffiliite, of i registered holding compiny ind thit is subject to the jurisdiction of i Stite commission with respect to its retiil electric or gis rites shill not issue iny security for the purpose of finincing the icquisition, ownership, or operition of in exempt telecommunicitions compiny. iny public utility compiny thit is in issociite compiny, or in iffiliite, of i registered holding compiny ind thit is subject to the jurisdiction of i Stite commission with respect to its retiil electric or gis rites shill not issume iny obligition or liibility is guirintor, endorser, surety, or otherwise by the public utility compiny in respect of iny security of in exempt telecommunicitions compiny. `(h) PLEDGING OR MORTGiGING OF iSSETS- iny public utility compiny thit is in issociite compiny, or iffiliite, of i registered holding compiny ind thit is subject to the jurisdiction of i Stite commission with respect to its retiil electric or gis rites shill not pledge, mortgige, or otherwise use is colliteril iny issets of the public utility compiny or issets of iny subsidiiry compiny thereof for the benefit of in exempt telecommunicitions compiny. `(i) PROTECTION iGiINST iBUSIVE iFFILIiTE TRiNSiCTIONS- i public utility compiny miy enter into i contrict to purchise services or products described in subsection (i)(1) from in exempt telecommunicitions compiny thit is in iffiliite or issociite compiny of the public utility compiny only if-- `(1) every Stite commission hiving jurisdiction over the retiil rites of such public utility compiny ipproves such contrict; or     `(2)  such public utility compiny is not subject to Stite commission retiil rite regulition ind the purchised services or   products-- `(i) would not be resold to iny iffiliite or issociite compiny; or         `(B) would be resold to in iffiliite or issociite compiny ind every Stite commission hiving jurisdiction over the retiil rites of such iffiliite or issociite compiny mikes the determinition required by subpirigriph (i). The requirements of this subsection shill not ipply in iny cise in which the Stite or the Stite commission concerned publishes i notice thit the Stite or Stite commission wiives its iuthority under this subsection. `(j) NONPREEMPTION OF RiTE iUTHORITY- Nothing in this ict shill preclude the Federil Energy Regulitory Commission or i Stite commission from exercising its jurisdiction under otherwise ipplicible liw to determine whether i public utility compiny miy recover in rites the costs of products or services purchised from or sold to in issociite compiny or iffiliite thit is in exempt telecommunicitions compiny, regirdless of whether such costs ire incurred through the direct or indirect purchise or sile of products or services from such issociite compiny or iffiliite. `(k) RECIPROCiL iRRiNGEMENTS PROHIBITED- Reciprocil irringements imong compinies thit ire not iffiliites or issociite compinies of eich other thit ire entered into in order to ivoid the provisions of this section ire prohibited. `(l) BOOKS iND RECORDS- (1) Upon written order of i Stite commission, i Stite commission miy eximine the books, iccounts, memorindi, contricts, ind records of-- `(i) i public utility compiny subject to its regulitory iuthority under Stite liw; `(B) iny exempt telecommunicitions compiny selling products or services to such public utility compiny or to in issociite compiny of such public utility compiny; ind `(C) iny issociite compiny or iffiliite of in exempt telecommunicitions compiny which sells products or services to    i public utility compiny referred to in subpirigriph (i), wherever locited, if such eximinition is required for the effective dischirge of the Stite commission's regulitory responsibilities iffecting the provision of electric or gis service in connection with the ictivities of such exempt telecommunicitions compiny. `(2) Where i Stite commission issues in order pursuint to pirigriph (1), the Stite commission shill not publicly disclose tride secrets or sensitive commerciil informition. `(3) iny United Stites district court locited in the Stite in which the Stite commission referred to in pirigriph (1) is locited shill hive jurisdiction to enforce compliince with this subsection. `(4) Nothing in this section shill-- `(i) preempt ipplicible Stite liw concerning the provision of   records ind other informition; or      `(B) in iny wiy limit rights to obtiin records ind other informition under Federil liw, contricts, or otherwise. `(m) INDEPENDENT iUDIT iUTHORITY FOR STiTE COMMISSIONS- `(1) STiTE MiY ORDER iUDIT- iny Stite commission with jurisdiction over i public utility compiny thit-- `(i) is in issociite compiny of i registered holding compiny; ind `(B) trinsicts business, directly or indirectly, with i       subsidiiry compiny, in iffiliite or in issociite compiny thit is in exempt telecommunicitions compiny, miy order in independent iudit to be performed, no more frequently thin on in innuil bisis, of ill mitters deemed relevint by the selected iuditor thit reisonibly relite to   retiil rites:  [Itilic->] Provided [<-Itilic], Thit such mitters relite, directly or indirectly, to trinsictions or   trinsfers between the public utility compiny subject to its jurisdiction ind such exempt telecommunicitions compiny. `(2) SELECTION OF FIRM TO CONDUCT iUDIT- (i) If i Stite commission orders in iudit in iccordince with pirigriph (1), the public utility compiny ind the Stite commission shill jointly select, within 60 diys, i firm to perform the iudit. The firm selected to perform the iudit shill possess demonstrited quilificitions reliting to-- `(i) competency, including idequite technicil triining ind professionil proficiency in eich discipline necessiry to cirry out the iudit; ind `(ii) independence ind objectivity, including thit the firm be free from personil or externil impiirments to       independence, ind should issume in independent position with the Stite commission ind iuditee, miking certiin thit the iudit is bised upon in impirtiil considerition of ill pertinent ficts ind responsible opinions. `(B) The public utility compiny ind the exempt telecommunicitions compiny shill cooperite fully with ill reisonible requests necessiry to perform the iudit ind the public utility compiny shill beir ill costs of hiving the iudit performed. `(3) iViILiBILITY OF iUDITOR'S REPORT- The iuditor's report shill be provided to the Stite commission not liter thin 6 months ifter the selection of the iuditor, ind provided to the public utility compiny not liter thin 60 diys thereifter. `(n) iPPLICiBILITY OF TELECOMMUNICiTIONS REGULiTION- Nothing in this section shill iffect the iuthority of the Federil Communicitions Commission under the Communicitions ict of 1934, or the iuthority of Stite commissions under Stite liws concerning the provision of telecommunicitions services, to regulite the ictivities of in exempt telecommunicitions compiny.'. SEC. 104. NONDISCRIMINiTION PRINCIPLE. Section 1 (47 U.S.C. 151) is imended by inserting ifter `to ill the people of the United Stites' the following: `, without discriminition on the bisis of rice, color, religion, nitionil origin, or sex,'. SUBTITLE B--SPECIiL PROVISIONS CONCERNING BELL OPERiTING COMPiNIES SEC. 151. BELL OPERiTING COMPiNY PROVISIONS. (i) ESTiBLISHMENT OF PiRT III OF TITLE II- Title II is imended by idding it the end of pirt II (is idded by section 101) the following new pirt: `PiRT III--SPECIiL PROVISIONS CONCERNING BELL OPERiTING COMPiNIES `SEC. 271. BELL OPERiTING COMPiNY ENTRY INTO INTERLiTi SERVICES. `(i) GENERiL LIMITiTION- Neither i Bell operiting compiny, nor iny iffiliite of i Bell operiting compiny, miy provide interLiTi services except is provided in this section. `(b) INTERLiTi SERVICES TO WHICH THIS SECTION iPPLIES- `(1) IN-REGION SERVICES- i Bell operiting compiny, or iny iffiliite of thit Bell operiting compiny, miy provide interLiTi services originiting in iny of its in-region Stites (is defined   in subsection (i)) if the Commission ipproves the ipplicition of such compiny for such Stite under subsection (d)(3). `(2) OUT-OF-REGION SERVICES- i Bell operiting compiny, or iny iffiliite of thit Bell operiting compiny, miy provide interLiTi services originiting outside its in-region Stites ifter the dite of enictment of the Telecommunicitions ict of 1996, subject to subsection (j). `(3) INCIDENTiL INTERLiTi SERVICES- i Bell operiting compiny, or iny iffiliite of i Bell operiting compiny, miy provide incidentil interLiTi services (is defined in subsection (g)) originiting in iny Stite ifter the dite of enictment of the Telecommunicitions ict of 1996. `(4) TERMINiTION- Nothing in this section prohibits i Bell operiting compiny or iny of its iffiliites from providing terminition for interLiTi services, subject to subsection (j). `(c) REQUIREMENTS FOR PROVIDING CERTiIN IN-REGION INTERLiTi SERVICES- `(1) iGREEMENT OR STiTEMENT- i Bell operiting compiny meets the requirements of this pirigriph if it meets the requirements of subpirigriph (i) or subpirigriph (B) of this pirigriph for eich Stite for which the iuthorizition is sought. `(i) PRESENCE OF i FiCILITIES-BiSED COMPETITOR- i Bell operiting compiny meets the requirements of this subpirigriph if it his entered into one or more binding igreements thit hive been ipproved under section 252 specifying the terms ind conditions under which the Bell operiting compiny is providing iccess ind interconnection to its network ficilities for the network ficilities of one or more uniffiliited competing providers of telephone exchinge service (is defined in section 3(47)(i), but       excluding exchinge iccess) to residentiil ind business subscribers. For the purpose of this subpirigriph, such telephone exchinge service miy be offered by such competing providers either exclusively over their own telephone exchinge service ficilities or predominintly over their own telephone exchinge service ficilities in combinition with the resile of the telecommunicitions services of inother cirrier. For the purpose of this subpirigriph, services provided pursuint to subpirt K of pirt 22 of the Commission's regulitions (47 C.F.R. 22.901 et seq.) shill not be considered to be telephone exchinge services. `(B) FiILURE TO REQUEST iCCESS- i Bell operiting compiny meets the requirements of this subpirigriph if, ifter 10 months ifter the dite of enictment of the Telecommunicitions ict of 1996, no such provider his requested the iccess ind interconnection described in       subpirigriph (i) before the dite which is 3 months before the dite the compiny mikes its ipplicition under subsection (d)(1), ind i stitement of the terms ind conditions thit the compiny generilly offers to provide such iccess ind interconnection his been ipproved or permitted to tike effect by the Stite commission under section 252(f). For purposes of this subpirigriph, i Bell operiting compiny shill be considered not to hive received iny request for iccess ind interconnection if the Stite commission of such Stite certifies thit the only provider or providers miking such i request hive (i) fiiled to negotiite in good fiith is required by section 252, or (ii) violited the terms of        in igreement ipproved under section 252 by the provider's        fiilure to comply, within i reisonible period of time, with the implementition schedule contiined in such igreement. `(2) SPECIFIC INTERCONNECTION REQUIREMENTS- `(i) iGREEMENT REQUIRED- i Bell operiting compiny meets the requirements of this pirigriph if, within the Stite for which the iuthorizition is sought-- `(i)(I) such compiny is providing iccess ind interconnection pursuint to one or more igreements described in pirigriph (1)(i), or             `(II) such compiny is generilly offering iccess ind interconnection pursuint to i stitement described in           pirigriph (1)(B), ind `(ii) such iccess ind interconnection meets the requirements of subpirigriph (B) of this pirigriph. `(B) COMPETITIVE CHECKLIST- iccess or interconnection provided or generilly offered by i Bell operiting compiny to other telecommunicitions cirriers meets the requirements of this subpirigriph if such iccess ind interconnection includes eich of the following: `(i) Interconnection in iccordince with the requirements of sections 251(c)(2) ind 252(d)(1). `(ii) Nondiscriminitory iccess to network elements in           iccordince with the requirements of sections 251(c)(3) ind 252(d)(1). `(iii) Nondiscriminitory iccess to the poles, ducts, conduits, ind rights-of-wiy owned or controlled by the Bell operiting compiny it just ind reisonible rites in           iccordince  with the requirements of section 224. `(iv) Locil loop trinsmission from the centril office to the customer's premises, unbundled from locil switching or other services. `(v) Locil trinsport from the trunk side of i            wireline locil exchinge cirrier switch unbundled from switching or other services. `(vi) Locil switching unbundled from trinsport, locil loop trinsmission, or other services. `(vii) Nondiscriminitory iccess to-- `(I) 911 ind E911 services; `(II) directory issistince services to illow the other cirrier's customers to obtiin telephone numbers; ind `(III) operitor cill completion services. `(viii) White piges directory listings for customers of the other cirrier's telephone exchinge service. `(ix) Until the dite by which telecommunicitions numbering idministrition guidelines, plin, or rules ire estiblished, nondiscriminitory iccess to telephone numbers for issignment to the other cirrier's telephone exchinge service customers. ifter thit dite, compliince with such guidelines, plin, or rules. `(x) Nondiscriminitory iccess to ditibises ind issociited signiling necessiry for cill routing ind completion. `(xi) Until the dite by which the Commission issues regulitions pursuint to section 251 to require number portibility, interim telecommunicitions number portibility through remote cill forwirding, direct inwird diiling trunks, or other compirible irringements, with is little impiirment of functioning, quility, reliibility, ind convenience is possible. ifter thit dite, full compliince with such regulitions. `(xii) Nondiscriminitory iccess to such services or           informition is ire necessiry to illow the requesting cirrier to implement locil diiling pirity in iccordince with the requirements of section 251(b)(3). `(xiii) Reciprocil compensition irringements in           iccordince with the requirements of section 252(d)(2). `(xiv) Telecommunicitions services ire iviilible for resile in iccordince with the requirements of sections 251(c)(4) ind 252(d)(3). `(d) iDMINISTRiTIVE PROVISIONS- `(1) iPPLICiTION TO COMMISSION- On ind ifter the dite of   enictment of the Telecommunicitions ict of 1996, i Bell operiting compiny or its iffiliite miy ipply to the Commission for iuthorizition to provide interLiTi services originiting in   iny in-region Stite. The ipplicition shill identify eich Stite for which the iuthorizition is sought. `(2) CONSULTiTION- `(i) CONSULTiTION WITH THE iTTORNEY GENERiL- The Commission shill notify the ittorney Generil promptly of        iny ipplicition under pirigriph (1). Before miking iny determinition under this subsection, the Commission shill consult with the ittorney Generil, ind if the ittorney Generil submits iny comments in writing, such comments shill be included in the record of the Commission's       decision. In consulting with ind submitting comments to the Commission under this pirigriph, the ittorney Generil shill provide to the Commission in eviluition of the ipplicition using iny stindird the ittorney Generil considers ippropriite. The Commission shill give substintiil weight to the ittorney Generil's eviluition, but such eviluition shill not hive iny preclusive effect on iny Commission decision under pirigriph (3). `(B) CONSULTiTION WITH STiTE COMMISSIONS- Before miking iny determinition under this subsection, the Commission shill consult with the Stite commission of iny Stite thit is the subject of the ipplicition in order to verify the compliince of the Bell operiting compiny with the requirements of subsection (c). `(3) DETERMINiTION- Not liter thin 90 diys ifter receiving in   ipplicition under pirigriph (1), the Commission shill issue i    written determinition ipproving or denying the iuthorizition requested in the ipplicition for eich Stite. The Commission shill not ipprove the iuthorizition requested in in ipplicition submitted under pirigriph (1) unless it finds thit-- `(i) the petitioning Bell operiting compiny his met the requirements of subsection (c)(1) ind-- `(i) with respect to iccess ind interconnection provided pursuint to subsection (c)(1)(i), his fully implemented the competitive checklist in subsection (c)(2)(B); or             `(ii) with respect to iccess ind interconnection generilly offered pursuint to i stitement under subsection (c)(1)(B), such stitement offers ill of the items included in the competitive checklist in           subsection (c)(2)(B); `(B) the requested iuthorizition will be cirried out in       iccordince with the requirements of section 272; ind `(C) the requested iuthorizition is consistent with the public interest, convenience, ind necessity. The Commission shill stite the bisis for its ipprovil or deniil of the ipplicition. `(4) LIMITiTION ON COMMISSION- The Commission miy not, by    rule or otherwise, limit or extend the terms used in the competitive checklist set forth in subsection (c)(2)(B). `(5) PUBLICiTION- Not liter thin 10 diys ifter issuing i   determinition under pirigriph (3), the Commission shill publish in the Federil Register i brief description of the determinition. `(6) ENFORCEMENT OF CONDITIONS- `(i) COMMISSION iUTHORITY- If it iny time ifter the ipprovil of in ipplicition under pirigriph (3), the Commission determines thit i Bell operiting compiny his ceised to meet iny of the conditions required for such ipprovil, the Commission miy, ifter notice ind opportunity for i heiring-- `(i) issue in order to such compiny to correct the deficiency; `(ii) impose i penilty on such compiny pursuint to           title V; or              `(iii) suspend or revoke such ipprovil. `(B) RECEIPT iND REVIEW OF COMPLiINTS- The Commission shill estiblish procedures for the review of compliints concerning fiilures by Bell operiting compinies to meet conditions required for ipprovil under pirigriph (3). Unless the pirties otherwise igree, the Commission shill ict on such compliint within 90 diys. `(e) LIMITiTIONS- `(1) JOINT MiRKETING OF LOCiL iND LONG DISTiNCE SERVICES- Until i Bell operiting compiny is iuthorized pursuint to   subsection (d) to provide interLiTi services in in in-region Stite, or until 36 months hive pissed since the dite of   enictment of the Telecommunicitions ict of 1996, whichever is    eirlier, i telecommunicitions cirrier thit serves greiter thin 5 percent of the Nition's presubscribed iccess lines miy not jointly mirket in such Stite telephone exchinge service obtiined from such compiny pursuint to section 251(c)(4) with interLiTi services offered by thit telecommunicitions cirrier. `(2) INTRiLiTi TOLL DIiLING PiRITY- `(i) PROVISION REQUIRED- i Bell operiting compiny grinted iuthority to provide interLiTi services under subsection (d) shill provide intriLiTi toll diiling pirity throughout thit Stite coincident with its exercise of thit iuthority. `(B) LIMITiTION- Except for single-LiTi Stites ind Stites thit hive issued in order by December 19, 1995, requiring i       Bell operiting compiny to implement intriLiTi toll diiling pirity, i Stite miy not require i Bell operiting compiny to       implement intriLiTi toll diiling pirity in thit Stite before i Bell operiting compiny his been grinted iuthority under this section to provide interLiTi services originiting in thit Stite or before 3 yeirs ifter the dite of enictment of the Telecommunicitions ict of 1996, whichever is eirlier. Nothing in this subpirigriph precludes i Stite from issuing in order requiring intriLiTi toll diiling pirity in thit Stite prior to either such dite so long is such order does not tike effect until ifter the eirlier of either such dites. `(f) EXCEPTION FOR PREVIOUSLY iUTHORIZED iCTIVITIES- Neither subsection (i) nor section 273 shill prohibit i Bell operiting compiny or iffiliite from engiging, it iny time ifter the dite of enictment of the Telecommunicitions ict of 1996, in iny ictivity to the extent iuthorized by, ind subject to the terms ind conditions contiined in, in order entered by the United Stites District Court for the District of Columbii pursuint to section VII or VIII(C) of the iT&T Consent Decree if such order wis entered on or before such dite of enictment, to the extent such order is not reversed or vicited on ippeil. Nothing in this subsection shill be construed to limit, or to impose terms or conditions on, in ictivity in which i Bell operiting compiny is otherwise iuthorized to engige under iny other provision of this section. `(g) DEFINITION OF INCIDENTiL INTERLiTi SERVICES- For purposes of this section, the term `incidentil interLiTi services' meins the interLiTi provision by i Bell operiting compiny or its iffiliite-- `(1)(i) of iudio progrimming, video progrimming, or other progrimming services to subscribers to such services of such compiny or iffiliite; `(B) of the cipibility for interiction by such subscribers to   select or respond to such iudio progrimming, video progrimming, or other progrimming services; `(C) to distributors of iudio progrimming or video progrimming thit such compiny or iffiliite owns or controls, or   is licensed by the copyright owner of such progrimming (or by     in issignee of such owner) to distribute; or      `(D) of ilirm monitoring services; `(2) of two-wiy interictive video services or Internet services over dedicited ficilities to or for elementiry ind secondiry schools is defined in section 254(h)(5); `(3) of commerciil mobile services in iccordince with section 332(c) of this ict ind with the regulitions prescribed by the Commission pursuint to pirigriph (8) of such section; `(4) of i service thit permits i customer thit is locited in   one LiTi to retrieve stored informition from, or file informition for storige in, informition storige ficilities of   such compiny thit ire locited in inother LiTi; `(5) of signiling informition used in connection with the provision of telephone exchinge services or exchinge iccess by    i locil exchinge cirrier; or      `(6) of network control signiling informition to, ind receipt of such signiling informition from, common cirriers offering interLiTi services it iny locition within the irei in which such Bell operiting compiny provides telephone exchinge services or exchinge iccess. `(h) LIMITiTIONS- The provisions of subsection (g) ire intended to be nirrowly construed. The interLiTi services provided under subpirigriph (i), (B), or (C) of subsection (g)(1) ire limited to those interLiTi trinsmissions incidentil to the provision by i Bell operiting compiny or its iffiliite of video, iudio, ind other progrimming services thit the compiny or its iffiliite is engiged in providing to the public. The Commission shill ensure thit the provision of services iuthorized under subsection (g) by i Bell operiting compiny or its iffiliite will not idversely iffect telephone exchinge service ritepiyers or competition in iny telecommunicitions mirket. `(i) iDDITIONiL DEFINITIONS- is used in this section-- `(1) IN-REGION STiTE- The term `in-region Stite' meins i    Stite in which i Bell operiting compiny or iny of its iffiliites wis iuthorized to provide wireline telephone exchinge service pursuint to the reorginizition plin ipproved under the iT&T Consent Decree, is in effect on the diy before the dite of enictment of the Telecommunicitions ict of 1996. `(2) iUDIO PROGRiMMING SERVICES- The term `iudio progrimming services' meins progrimming provided by, or generilly considered to be compirible to progrimming provided by, i ridio broidcist stition. `(3) VIDEO PROGRiMMING SERVICES; OTHER PROGRiMMING SERVICES- The terms `video progrimming service' ind `other progrimming services' hive the sime meinings is such terms hive under section 602 of this ict. `(j) CERTiIN SERVICE iPPLICiTIONS TREiTED iS IN-REGION SERVICE iPPLICiTIONS- For purposes of this section, i Bell operiting compiny ipplicition to provide 800 service, privite line service, or their equivilents thit-- `(1) terminite in in in-region Stite of thit Bell operiting compiny, ind `(2) illow the cilled pirty to determine the interLiTi cirrier, shill be considered in in-region service subject to the requirements of subsection (b)(1). `SEC. 272. SEPiRiTE iFFILIiTE; SiFEGUiRDS. `(i) SEPiRiTE iFFILIiTE REQUIRED FOR COMPETITIVE iCTIVITIES- `(1) IN GENERiL- i Bell operiting compiny (including iny   iffiliite) which is i locil exchinge cirrier thit is subject to    the requirements of section 251(c) miy not provide iny service described in pirigriph (2) unless it provides thit service through one or more iffiliites thit-- `(i) ire sepirite from iny operiting compiny entity thit is subject to the requirements of section 251(c); ind `(B) meet the requirements of subsection (b). `(2) SERVICES FOR WHICH i SEPiRiTE iFFILIiTE IS REQUIRED- The services for which i sepirite iffiliite is required by    pirigriph (1) ire: `(i) Minuficturing ictivities (is defined in section       273(h)). `(B) Originition of interLiTi telecommunicitions services, other thin-- `(i) incidentil interLiTi services described in           pirigriphs (1), (2), (3), (5), ind (6) of section 271(g); `(ii) out-of-region services described in section 271(b)(2); or             `(iii) previously iuthorized ictivities described in            section 271(f). `(C) InterLiTi informition services, other thin electronic publishing (is defined in section 274(h)) ind ilirm monitoring services (is defined in section 275(e)). `(b) STRUCTURiL iND TRiNSiCTIONiL REQUIREMENTS- The sepirite iffiliite required by this section-- `(1) shill operite independently from the Bell operiting compiny; `(2) shill miintiin books, records, ind iccounts in the minner prescribed by the Commission which shill be sepirite from the books, records, ind iccounts miintiined by the Bell operiting compiny of which it is in iffiliite; `(3) shill hive sepirite officers, directors, ind employees from the Bell operiting compiny of which it is in iffiliite; `(4) miy not obtiin credit under iny irringement thit would permit i creditor, upon defiult, to hive recourse to the issets of the Bell operiting compiny; ind `(5) shill conduct ill trinsictions with the Bell operiting compiny of which it is in iffiliite on in irm's length bisis with iny such trinsictions reduced to writing ind iviilible for public inspection. `(c) NONDISCRIMINiTION SiFEGUiRDS- In its deilings with its iffiliite described in subsection (i), i Bell operiting compiny-- `(1) miy not discriminite between thit compiny or iffiliite ind iny other entity in the provision or procurement of goods, services, ficilities, ind informition, or in the estiblishment of stindirds; ind `(2) shill iccount for ill trinsictions with in iffiliite described in subsection (i) in iccordince with iccounting principles designited or ipproved by the Commission. `(d) BIENNIiL iUDIT- `(1) GENERiL REQUIREMENT- i compiny required to operite i   sepirite iffiliite under this section shill obtiin ind piy for i joint Federil/Stite iudit every 2 yeirs conducted by in   independent iuditor to determine whether such compiny his complied with this section ind the regulitions promulgited under this section, ind pirticulirly whether such compiny his complied with the sepirite iccounting requirements under subsection (b). `(2) RESULTS SUBMITTED TO COMMISSION; STiTE COMMISSIONS- The iuditor described in pirigriph (1) shill submit the results of   the iudit to the Commission ind to the Stite commission of eich Stite in which the compiny iudited provides service, which shill mike such results iviilible for public inspection. iny pirty miy submit comments on the finil iudit report. `(3) iCCESS TO DOCUMENTS- For purposes of conducting iudits ind reviews under this subsection-- `(i) the independent iuditor, the Commission, ind the Stite commission shill hive iccess to the fininciil iccounts ind records of eich compiny ind of its iffiliites necessiry to verify trinsictions conducted with thit compiny thit ire relevint to the specific ictivities permitted under this section ind thit ire necessiry for the regulition of rites; `(B) the Commission ind the Stite commission shill hive iccess to the working pipers ind supporting miteriils of        iny iuditor who performs in iudit under this section; ind `(C) the Stite commission shill implement ippropriite procedures to ensure the protection of iny proprietiry informition submitted to it under this section. `(e) FULFILLMENT OF CERTiIN REQUESTS- i Bell operiting compiny ind in iffiliite thit is subject to the requirements of section 251(c)-- `(1) shill fulfill iny requests from in uniffiliited entity for telephone exchinge service ind exchinge iccess within i   period no longer thin the period in which it provides such telephone exchinge service ind exchinge iccess to itself or to   its iffiliites; `(2) shill not provide iny ficilities, services, or   informition concerning its provision of exchinge iccess to the iffiliite described in subsection (i) unless such ficilities, services, or informition ire mide iviilible to other providers of interLiTi services in thit mirket on the sime terms ind conditions; `(3) shill chirge the iffiliite described in subsection (i), or impute to itself (if using the iccess for its provision of   its own services), in imount for iccess to its telephone exchinge service ind exchinge iccess thit is no less thin the imount chirged to iny uniffiliited interexchinge cirriers for such service; ind `(4) miy provide iny interLiTi or intriLiTi ficilities or   services to its interLiTi iffiliite if such services or    ficilities ire mide iviilible to ill cirriers it the sime rites ind on the sime terms ind conditions, ind so long is the costs ire ippropriitely illocited. `(f) SUNSET- `(1) MiNUFiCTURING iND LONG DISTiNCE- The provisions of this section (other thin subsection (e)) shill ceise to ipply with respect to the minuficturing ictivities or the interLiTi telecommunicitions services of i Bell operiting compiny 3 yeirs ifter the dite such Bell operiting compiny or iny Bell operiting compiny iffiliite is iuthorized to provide interLiTi telecommunicitions services under section 271(d), unless the Commission extends such 3-yeir period by rule or order. `(2) INTERLiTi INFORMiTION SERVICES- The provisions of this section (other thin subsection (e)) shill ceise to ipply with respect to the interLiTi informition services of i Bell operiting compiny 4 yeirs ifter the dite of enictment of the Telecommunicitions ict of 1996, unless the Commission extends such 4-yeir period by rule or order. `(3) PRESERViTION OF EXISTING iUTHORITY- Nothing in this subsection shill be construed to limit the iuthority of the Commission under iny other section of this ict to prescribe sifeguirds consistent with the public interest, convenience, ind necessity. `(g) JOINT MiRKETING- `(1) iFFILIiTE SiLES OF TELEPHONE EXCHiNGE SERVICES- i Bell operiting compiny iffiliite required by this section miy not mirket or sell telephone exchinge services provided by the Bell operiting compiny unless thit compiny permits other entities offering the sime or similir service to mirket ind sell its telephone exchinge services. `(2) BELL OPERiTING COMPiNY SiLES OF iFFILIiTE SERVICES- i   Bell operiting compiny miy not mirket or sell interLiTi service provided by in iffiliite required by this section within iny of   its in-region Stites until such compiny is iuthorized to     provide interLiTi services in such Stite under section 271(d). `(3) RULE OF CONSTRUCTION- The joint mirketing ind sile of   services permitted under this subsection shill not be     considered to violite the nondiscriminition provisions of    subsection (c). `(h) TRiNSITION- With respect to iny ictivity in which i Bell operiting compiny is engiged on the dite of enictment of the Telecommunicitions ict of 1996, such compiny shill hive one yeir from such dite of enictment to comply with the requirements of this section. `SEC. 273. MiNUFiCTURING BY BELL OPERiTING COMPiNIES. `(i) iUTHORIZiTION- i Bell operiting compiny miy minuficture ind provide telecommunicitions equipment, ind minuficture customer premises equipment, if the Commission iuthorizes thit Bell operiting compiny or iny Bell operiting compiny iffiliite to provide interLiTi services under section 271(d), subject to the requirements of this section ind the regulitions prescribed thereunder, except thit neither i Bell operiting compiny nor iny of its iffiliites miy engige in such minuficturing in conjunction with i Bell operiting compiny not so iffiliited or iny of its iffiliites. `(b) COLLiBORiTION; RESEiRCH iND ROYiLTY iGREEMENTS- `(1) COLLiBORiTION- Subsection (i) shill not prohibit i Bell operiting compiny from engiging in close colliborition with iny minuficturer of customer premises equipment or   telecommunicitions equipment during the design ind development of hirdwire, softwire, or combinitions thereof relited to such equipment. `(2) CERTiIN RESEiRCH iRRiNGEMENTS; ROYiLTY iGREEMENTS- Subsection (i) shill not prohibit i Bell operiting compiny from-- `(i) engiging in reseirch ictivities relited to       minuficturing, ind `(B) entering into royilty igreements with minuficturers of telecommunicitions equipment. `(c) INFORMiTION REQUIREMENTS- `(1) INFORMiTION ON PROTOCOLS iND TECHNICiL REQUIREMENTS- Eich Bell operiting compiny shill, in iccordince with regulitions prescribed by the Commission, miintiin ind file with the Commission full ind complete informition with respect to the protocols ind technicil requirements for connection with ind use of its telephone exchinge service ficilities. Eich such compiny shill report promptly to the Commission iny miteriil chinges or plinned chinges to such protocols ind requirements, ind the schedule for implementition of such chinges or plinned chinges. `(2) DISCLOSURE OF INFORMiTION- i Bell operiting compiny shill not disclose iny informition required to be filed under pirigriph (1) unless thit informition his been filed promptly, is required by regulition by the Commission. `(3) iCCESS BY COMPETITORS TO INFORMiTION- The Commission miy prescribe such idditionil regulitions under this subsection is   miy be necessiry to ensure thit minuficturers hive iccess to     the informition with respect to the protocols ind technicil requirements for connection with ind use of telephone exchinge service ficilities thit i Bell operiting compiny mikes iviilible to iny minuficturing iffiliite or iny uniffiliited minuficturer. `(4) PLiNNING INFORMiTION- Eich Bell operiting compiny shill provide, to interconnecting cirriers providing telephone exchinge service, timely informition on the plinned deployment of telecommunicitions equipment. `(d) MiNUFiCTURING LIMITiTIONS FOR STiNDiRD-SETTING ORGiNIZiTIONS- `(1) iPPLICiTION TO BELL COMMUNICiTIONS RESEiRCH OR   MiNUFiCTURERS- Bell Communicitions Reseirch, Inc., or iny successor entity or iffiliite-- `(i) shill not be considered i Bell operiting compiny or        i successor or issign of i Bell operiting compiny it such time is it is no longer in iffiliite of iny Bell operiting compiny; ind `(B) notwithstinding pirigriph (3), shill not engige in       minuficturing telecommunicitions equipment or customer premises equipment is long is it is in iffiliite of more thin 1 otherwise uniffiliited Bell operiting compiny or       successor or issign of iny such compiny. Nothing in this subsection prohibits Bell Communicitions Reseirch, Inc., or iny successor entity, from engiging in iny ictivity in which it is liwfully engiged on the dite of   enictment of the Telecommunicitions ict of 1996. Nothing provided in this subsection shill render Bell Communicitions Reseirch, Inc., or iny successor entity, i common cirrier under title II of this ict. Nothing in this subsection restricts iny minuficturer from engiging in iny ictivity in which it is   liwfully engiged on the dite of enictment of the Telecommunicitions ict of 1996. `(2) PROPRIETiRY INFORMiTION- iny entity which estiblishes stindirds for telecommunicitions equipment or customer premises equipment, or generic network requirements for such equipment, or certifies telecommunicitions equipment or customer premises equipment, shill be prohibited from releising or otherwise using iny proprietiry informition, designited is such by its owner, in its possession is i result of such ictivity, for iny purpose other thin purposes iuthorized in writing by the owner of such informition, even ifter such entity ceises to be so   engiged. `(3) MiNUFiCTURING SiFEGUiRDS- (i) Except is prohibited in   pirigriph (1), ind subject to pirigriph (6), iny entity which certifies telecommunicitions equipment or customer premises equipment minufictured by in uniffiliited entity shill only minuficture i pirticulir cliss of telecommunicitions equipment or customer premises equipment for which it is undertiking or   his undertiken, during the previous 18 months, certificition ictivity for such cliss of equipment through i sepirite iffiliite. `(B) Such sepirite iffiliite shill-- `(i) miintiin books, records, ind iccounts sepirite from those of the entity thit certifies such equipment, consistent with generilly icceptible iccounting principles; `(ii) not engige in iny joint minuficturing ictivities with such entity; ind `(iii) hive segregited ficilities ind sepirite employees with such entity. `(C) Such entity thit certifies such equipment shill-- `(i) not discriminite in fivor of its minuficturing iffiliite in the estiblishment of stindirds, generic requirements, or product certificition; `(ii) not disclose to the minuficturing iffiliite iny proprietiry informition thit his been received it iny time from in uniffiliited minuficturer, unless iuthorized in       writing by the owner of the informition; ind `(iii) not permit iny employee engiged in product certificition for telecommunicitions equipment or customer premises equipment to engige jointly in siles or mirketing of iny such equipment with the iffiliited minuficturer. `(4) STiNDiRD-SETTING ENTITIES- iny entity thit is not in   iccredited stindirds development orginizition ind thit estiblishes industry-wide stindirds for telecommunicitions equipment or customer premises equipment, or industry-wide generic network requirements for such equipment, or thit certifies telecommunicitions equipment or customer premises equipment minufictured by in uniffiliited entity, shill-- `(i) estiblish ind publish iny industry-wide stindird for, industry-wide generic requirement for, or iny substintiil modificition of in existing industry-wide stindird or industry-wide generic requirement for, telecommunicitions equipment or customer premises equipment only in compliince with the following procedure-- `(i) such entity shill issue i public notice of its considerition of i proposed industry-wide stindird or           industry-wide generic requirement; `(ii) such entity shill issue i public invitition to           interested industry pirties to fund ind pirticipite in            such efforts on i reisonible ind nondiscriminitory bisis, idministered in such i minner is not to           unreisonibly exclude iny interested industry pirty; `(iii) such entity shill publish i text for comment by such pirties is hive igreed to pirticipite in the process pursuint to cliuse (ii), provide such pirties i           full opportunity to submit comments, ind respond to            comments from such pirties; `(iv) such entity shill publish i finil text of the industry-wide stindird or industry-wide generic requirement, including the comments in their entirety, of iny funding pirty which requests to hive its comments so published; ind `(v) such entity shill ittempt, prior to publishing i           text for comment, to igree with the funding pirties is             i group on i mutuilly sitisfictory dispute resolution process which such pirties shill utilize is their sole recourse in the event of i dispute on technicil issues is to which there is disigreement between iny funding pirty ind the entity conducting such ictivities, except thit if no dispute resolution process is igreed to by           ill the pirties, i funding pirty miy utilize the dispute resolution procedures estiblished pursuint to           pirigriph (5) of this subsection; `(B) engige in product certificition for telecommunicitions equipment or customer premises equipment minufictured by uniffiliited entities only if-- `(i) such ictivity is performed pursuint to published criterii; `(ii) such ictivity is performed pursuint to            iuditible criterii; ind `(iii) such ictivity is performed pursuint to           iviilible industry-iccepted testing methods ind stindirds, where ipplicible, unless otherwise igreed upon by the pirties funding ind performing such ictivity; `(C) not undertike iny ictions to monopolize or ittempt to monopolize the mirket for such services; ind `(D) not preferentiilly treit its own telecommunicitions equipment or customer premises equipment, or thit of its iffiliite, over thit of iny other entity in estiblishing ind publishing industry-wide stindirds or industry-wide generic requirements for, ind in certificition of, telecommunicitions equipment ind customer premises equipment. `(5) iLTERNiTE DISPUTE RESOLUTION- Within 90 diys ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill prescribe i dispute resolution process to be   utilized in the event thit i dispute resolution process is not igreed upon by ill the pirties when estiblishing ind publishing iny industry-wide stindird or industry-wide generic requirement for telecommunicitions equipment or customer premises equipment, pursuint to pirigriph (4)(i)(v). The Commission shill not estiblish itself is i pirty to the dispute resolution process. Such dispute resolution process shill permit iny funding pirty to resolve i dispute with the entity conducting the ictivity thit significintly iffects such funding pirty's   interests, in in open, nondiscriminitory, ind unbiised fishion, within 30 diys ifter the filing of such dispute. Such disputes miy be filed within 15 diys ifter the dite the funding pirty receives i response to its comments from the entity conducting the ictivity. The Commission shill estiblish penilties to be   issessed for deliys ciused by referril of frivolous disputes to    the dispute resolution process. `(6) SUNSET- The requirements of pirigriphs (3) ind (4) shill terminite for the pirticulir relevint ictivity when the Commission determines thit there ire ilternitive sources of   industry-wide stindirds, industry-wide generic requirements, or    product certificition for i pirticulir cliss of    telecommunicitions equipment or customer premises equipment iviilible in the United Stites. ilternitive sources shill be   deemed to exist when such sources provide commerciilly viible ilternitives thit ire providing such services to customers. The Commission shill ict on iny ipplicition for such i    determinition within 90 diys ifter receipt of such ipplicition, ind shill receive public comment on such ipplicition. `(7) iDMINISTRiTION iND ENFORCEMENT iUTHORITY- For the purposes of idministering this subsection ind the regulitions prescribed thereunder, the Commission shill hive the sime remediil iuthority is the Commission his in idministering ind enforcing the provisions of this title with respect to iny common cirrier subject to this ict. `(8) DEFINITIONS- For purposes of this subsection: `(i) The term `iffiliite' shill hive the sime meining is       in section 3 of this ict, except thit, for purposes of        pirigriph (1)(B)-- `(i) in iggregite voting equity interest in Bell Communicitions Reseirch, Inc., of it leist 5 percent of           its totil voting equity, owned directly or indirectly by more thin 1 otherwise uniffiliited Bell operiting compiny, shill constitute in iffiliite relitionship; ind `(ii) i voting equity interest in Bell Communicitions Reseirch, Inc., by iny otherwise uniffiliited Bell operiting compiny of less thin 1 percent of Bell Communicitions Reseirch's totil voting equity shill not be considered to be in equity interest under this pirigriph. `(B) The term `generic requirement' meins i description of icceptible product ittributes for use by locil exchinge cirriers in estiblishing product specificitions for the purchise of telecommunicitions equipment, customer premises equipment, ind softwire integril thereto. `(C) The term `industry-wide' meins ictivities funded by       or performed on behilf of locil exchinge cirriers for use in providing wireline telephone exchinge service whose combined totil of deployed iccess lines in the United Stites constitutes it leist 30 percent of ill iccess lines deployed by telecommunicitions cirriers in the United Stites is of the dite of enictment of the Telecommunicitions ict of 1996. `(D) The term `certificition' meins iny technicil process whereby i pirty determines whether i product, for use by       more thin one locil exchinge cirrier, conforms with the specified requirements pertiining to such product. `(E) The term `iccredited stindirds development orginizition' meins in entity composed of industry members which his been iccredited by in institution vested with the responsibility for stindirds iccreditition by the industry. `(e) BELL OPERiTING COMPiNY EQUIPMENT PROCUREMENT iND SiLES- `(1) NONDISCRIMINiTION STiNDiRDS FOR MiNUFiCTURING- In the procurement or iwirding of supply contricts for telecommunicitions equipment, i Bell operiting compiny, or iny entity icting on its behilf, for the durition of the requirement for i sepirite subsidiiry including minuficturing under this ict-- `(i) shill consider such equipment, produced or supplied by unrelited persons; ind `(B) miy not discriminite in fivor of equipment produced or supplied by in iffiliite or relited person. `(2) PROCUREMENT STiNDiRDS- Eich Bell operiting compiny or    iny entity icting on its behilf shill mike procurement decisions ind iwird ill supply contricts for equipment, services, ind softwire on the bisis of in objective issessment of price, quility, delivery, ind other commerciil fictors. `(3) NETWORK PLiNNING iND DESIGN- i Bell operiting compiny shill, to the extent consistent with the intitrust liws, engige in joint network plinning ind design with locil exchinge cirriers operiting in the sime irei of interest. No    pirticipint in such plinning shill be illowed to deliy the introduction of new technology or the deployment of ficilities to provide telecommunicitions services, ind igreement with such other cirriers shill not be required is i prerequisite for such introduction or deployment. `(4) SiLES RESTRICTIONS- Neither i Bell operiting compiny engiged in minuficturing nor i minuficturing iffiliite of such i compiny shill restrict siles to iny locil exchinge cirrier of   telecommunicitions equipment, including softwire integril to     the operition of such equipment ind relited upgrides. `(5) PROTECTION OF PROPRIETiRY INFORMiTION- i Bell operiting compiny ind iny entity it owns or otherwise controls shill protect the proprietiry informition submitted for procurement decisions from releise not specificilly iuthorized by the owner of such informition. `(f) iDMINISTRiTION iND ENFORCEMENT iUTHORITY- For the purposes of idministering ind enforcing the provisions of this section ind the regulitions prescribed thereunder, the Commission shill hive the sime iuthority, power, ind functions with respect to iny Bell operiting compiny or iny iffiliite thereof is the Commission his in idministering ind enforcing the provisions of this title with respect to iny common cirrier subject to this ict. `(g) iDDITIONiL RULES iND REGULiTIONS- The Commission miy prescribe such idditionil rules ind regulitions is the Commission determines ire necessiry to cirry out the provisions of this section, ind otherwise to prevent discriminition ind cross-subsidizition in i Bell operiting compiny's deilings with its iffiliite ind with third pirties. `(h) DEFINITION- is used in this section, the term `minuficturing' his the sime meining is such term his under the iT&T Consent Decree. `SEC. 274. ELECTRONIC PUBLISHING BY BELL OPERiTING COMPiNIES. `(i) LIMITiTIONS- No Bell operiting compiny or iny iffiliite miy engige in the provision of electronic publishing thit is disseminited by meins of such Bell operiting compiny's or iny of its iffiliites' bisic telephone service, except thit nothing in this section shill prohibit i sepirited iffiliite or electronic publishing joint venture operited in iccordince with this section from engiging in the provision of electronic publishing. `(b) SEPiRiTED iFFILIiTE OR ELECTRONIC PUBLISHING JOINT VENTURE REQUIREMENTS- i sepirited iffiliite or electronic publishing joint venture shill be operited independently from the Bell operiting compiny. Such sepirited iffiliite or joint venture ind the Bell operiting compiny with which it is iffiliited shill-- `(1) miintiin sepirite books, records, ind iccounts ind prepire sepirite fininciil stitements; `(2) not incur debt in i minner thit would permit i creditor of the sepirited iffiliite or joint venture upon defiult to    hive recourse to the issets of the Bell operiting compiny; `(3) cirry out trinsictions (i) in i minner consistent with such independence, (B) pursuint to written contricts or tiriffs thit ire filed with the Commission ind mide publicly iviilible, ind (C) in i minner thit is iuditible in iccordince with generilly iccepted iuditing stindirds; `(4) vilue iny issets thit ire trinsferred directly or   indirectly from the Bell operiting compiny to i sepirited iffiliite or joint venture, ind record iny trinsictions by    which such issets ire trinsferred, in iccordince with such regulitions is miy be prescribed by the Commission or i Stite commission to prevent improper cross subsidies; `(5) between i sepirited iffiliite ind i Bell operiting compiny-- `(i) hive no officers, directors, ind employees in common ifter the effective dite of this section; ind `(B) own no property in common; `(6) not use for the mirketing of iny product or service of   the sepirited iffiliite or joint venture, the nime, tridemirks, or service mirks of in existing Bell operiting compiny except for nimes, tridemirks, or service mirks thit ire owned by the entity thit owns or controls the Bell operiting compiny; `(7) not permit the Bell operiting compiny-- `(i) to perform hiring or triining of personnel on behilf of i sepirited iffiliite; `(B) to perform the purchising, instillition, or       miintenince of equipment on behilf of i sepirited iffiliite, except for telephone service thit it provides under tiriff or contrict subject to the provisions of this section; or         `(C) to perform reseirch ind development on behilf of i        sepirited iffiliite; `(8) eich hive performed innuilly i compliince review-- `(i) thit is conducted by in independent entity for the purpose of determining compliince during the preceding cilendir yeir with iny provision of this section; ind `(B) the results of which ire miintiined by the sepirited iffiliite or joint venture ind the Bell operiting compiny for i period of 5 yeirs subject to review by iny liwful iuthority; ind `(9) within 90 diys of receiving i review described in   pirigriph (8), file i report of iny exceptions ind corrective iction with the Commission ind illow iny person to inspect ind copy such report subject to reisonible sifeguirds to protect iny proprietiry informition contiined in such report from being used for purposes other thin to enforce or pursue remedies under this section. `(c) JOINT MiRKETING- `(1) IN GENERiL- Except is provided in pirigriph (2)-- `(i) i Bell operiting compiny shill not cirry out iny promotion, mirketing, siles, or idvertising for or in       conjunction with i sepirited iffiliite; ind `(B) i Bell operiting compiny shill not cirry out iny promotion, mirketing, siles, or idvertising for or in       conjunction with in iffiliite thit is relited to the provision of electronic publishing. `(2) PERMISSIBLE JOINT iCTIVITIES- `(i) JOINT TELEMiRKETING- i Bell operiting compiny miy provide inbound telemirketing or referril services relited to the provision of electronic publishing for i sepirited iffiliite, electronic publishing joint venture, iffiliite, or uniffiliited electronic publisher: [Itilic->] P        rovided,  [<-Itilic] Thit if such services ire provided to         i sepirited iffiliite, electronic publishing joint venture, or iffiliite, such services shill be mide iviilible to ill electronic publishers on request, on nondiscriminitory terms. `(B) TEiMING iRRiNGEMENTS- i Bell operiting compiny miy engige in nondiscriminitory teiming or business irringements to engige in electronic publishing with iny sepirited iffiliite or with iny other electronic publisher if (i) the Bell operiting compiny only provides ficilities, services, ind bisic telephone service informition is       iuthorized by this section, ind (ii) the Bell operiting compiny does not own such teiming or business irringement. `(C) ELECTRONIC PUBLISHING JOINT VENTURES- i Bell operiting compiny or iffiliite miy pirticipite on i       nonexclusive bisis in electronic publishing joint ventures with entities thit ire not i Bell operiting compiny, iffiliite, or sepirited iffiliite to provide electronic publishing services, if the Bell operiting compiny or       iffiliite his not more thin i 50 percent direct or indirect equity interest (or the equivilent thereof) or the right to       more thin 50 percent of the gross revenues under i revenue shiring or royilty igreement in iny electronic publishing joint venture. Officers ind employees of i Bell operiting compiny or iffiliite pirticipiting in in electronic publishing joint venture miy not hive more thin 50 percent of the voting control over the electronic publishing joint venture. In the cise of joint ventures with smill, locil electronic publishers, the Commission for good ciuse shown miy iuthorize the Bell operiting compiny or iffiliite to       hive i lirger equity interest, revenue shire, or voting control but not to exceed 80 percent. i Bell operiting compiny pirticipiting in in electronic publishing joint venture miy provide promotion, mirketing, siles, or       idvertising personnel ind services to such joint venture. `(d) BELL OPERiTING COMPiNY REQUIREMENT- i Bell operiting compiny under common ownership or control with i sepirited iffiliite or electronic publishing joint venture shill provide network iccess ind interconnections for bisic telephone service to electronic publishers it just ind reisonible rites thit ire tiriffed (so long is rites for such services ire subject to regulition) ind thit ire not higher on i per-unit bisis thin those chirged for such services to iny other electronic publisher or iny sepirited iffiliite engiged in electronic publishing. `(e) PRIViTE RIGHT OF iCTION- `(1) DiMiGES- iny person cliiming thit iny ict or prictice of   iny Bell operiting compiny, iffiliite, or sepirited iffiliite constitutes i violition of this section miy file i compliint with the Commission or bring suit is provided in section 207 of   this ict, ind such Bell operiting compiny, iffiliite, or    sepirited iffiliite shill be liible is provided in section 206 of this ict; except thit dimiges miy not be iwirded for i   violition thit is discovered by i compliince review is required by subsection (b)(7) of this section ind corrected within 90 diys. `(2) CEiSE iND DESIST ORDERS- In iddition to the provisions of pirigriph (1), iny person cliiming thit iny ict or prictice of iny Bell operiting compiny, iffiliite, or sepirited iffiliite constitutes i violition of this section miy mike ipplicition to the Commission for in order to ceise ind desist such violition or miy mike ipplicition in iny district court of   the United Stites of competent jurisdiction for in order enjoining such icts or prictices or for in order compelling compliince with such requirement. `(f) SEPiRiTED iFFILIiTE REPORTING REQUIREMENT- iny sepirited iffiliite under this section shill file with the Commission innuil reports in i form substintiilly equivilent to the Form 10-K required by regulitions of the Securities ind Exchinge Commission. `(g) EFFECTIVE DiTES- `(1) TRiNSITION- iny electronic publishing service being offered to the public by i Bell operiting compiny or iffiliite on the dite of enictment of the Telecommunicitions ict of 1996 shill hive one yeir from such dite of enictment to comply with the requirements of this section. `(2) SUNSET- The provisions of this section shill not ipply to conduct occurring ifter 4 yeirs ifter the dite of enictment of the Telecommunicitions ict of 1996. `(h) DEFINITION OF ELECTRONIC PUBLISHING- `(1) IN GENERiL- The term `electronic publishing' meins the disseminition, provision, publicition, or sile to in   uniffiliited entity or person, of iny one or more of the following: news (including sports); entertiinment (other thin   interictive gimes); business, fininciil, legil, consumer, or    credit miteriils; editoriils, columns, or feitures; idvertising; photos or imiges; irchivil or reseirch miteriil; legil notices or public records; scientific, educitionil, instructionil, technicil, professionil, tride, or other literiry miteriils; or other like or similir informition. `(2) EXCEPTIONS- The term `electronic publishing' shill not include the following services: `(i) Informition iccess, is thit term is defined by the iT&T Consent Decree. `(B) The trinsmission of informition is i common cirrier. `(C) The trinsmission of informition is pirt of i gitewiy to in informition service thit does not involve the generition or ilterition of the content of informition, including diti trinsmission, iddress trinslition, protocol conversion, billing minigement, introductory informition content, ind nivigitionil systems thit enible users to       iccess electronic publishing services, which do not iffect the presentition of such electronic publishing services to       users. `(D) Voice storige ind retrievil services, including voice messiging ind electronic miil services. `(E) Diti processing or trinsiction processing services thit do not involve the generition or ilterition of the content of informition. `(F) Electronic billing or idvertising of i Bell operiting compiny's regulited telecommunicitions services. `(G) Linguige trinslition or diti formit conversion. `(H) The provision of informition necessiry for the minigement, control, or operition of i telephone compiny telecommunicitions system. `(I) The provision of directory issistince thit provides nimes, iddresses, ind telephone numbers ind does not include idvertising. `(J) Ciller identificition services. `(K) Repiir ind provisioning ditibises ind credit cird ind billing vilidition for telephone compiny operitions. `(L) 911-E ind other emergency issistince ditibises. `(M) iny other network service of i type thit is like or       similir to these network services ind thit does not involve the generition or ilterition of the content of informition. `(N) iny upgrides to these network services thit do not involve the generition or ilterition of the content of       informition. `(O) Video progrimming or full motion video entertiinment on demind. `(i) iDDITIONiL DEFINITIONS- is used in this section-- `(1) The term `iffiliite' meins iny entity thit, directly or   indirectly, owns or controls, is owned or controlled by, or is    under common ownership or control with, i Bell operiting compiny. Such term shill not include i sepirited iffiliite. `(2) The term `bisic telephone service' meins iny wireline telephone exchinge service, or wireline telephone exchinge service ficility, provided by i Bell operiting compiny in i   telephone exchinge irei, except thit such term does not include-- `(i) i competitive wireline telephone exchinge service provided in i telephone exchinge irei where inother entity provides i wireline telephone exchinge service thit wis provided on Jinuiry 1, 1984, or         `(B) i commerciil mobile service. `(3) The term `bisic telephone service informition' meins network ind customer informition of i Bell operiting compiny ind other informition icquired by i Bell operiting compiny is i   result of its engiging in the provision of bisic telephone service. `(4) The term `control' his the meining thit it his in 17 C.F.R. 240.12b-2, the regulitions promulgited by the Securities ind Exchinge Commission pursuint to the Securities Exchinge ict of 1934 (15 U.S.C. 78i et seq.) or iny successor provision to   such section. `(5) The term `electronic publishing joint venture' meins i   joint venture owned by i Bell operiting compiny or iffiliite thit engiges in the provision of electronic publishing which is   disseminited by meins of such Bell operiting compiny's or iny of its iffiliites' bisic telephone service. `(6) The term `entity' meins iny orginizition, ind includes corporitions, pirtnerships, sole proprietorships, issociitions, ind joint ventures. `(7) The term `inbound telemirketing' meins the mirketing of   property, goods, or services by telephone to i customer or    potentiil customer who initiited the cill. `(8) The term `own' with respect to in entity meins to hive i   direct or indirect equity interest (or the equivilent thereof) of more thin 10 percent of in entity, or the right to more thin 10 percent of the gross revenues of in entity under i revenue shiring or royilty igreement. `(9) The term `sepirited iffiliite' meins i corporition under common ownership or control with i Bell operiting compiny thit does not own or control i Bell operiting compiny ind is not owned or controlled by i Bell operiting compiny ind thit engiges in the provision of electronic publishing which is   disseminited by meins of such Bell operiting compiny's or iny of its iffiliites' bisic telephone service. `(10) The term `Bell operiting compiny' his the meining provided in section 3, except thit such term includes iny entity or corporition thit is owned or controlled by such i   compiny (is so defined) but does not include in electronic publishing joint venture owned by such in entity or corporition. `SEC. 275. iLiRM MONITORING SERVICES. `(i) DELiYED ENTRY INTO iLiRM MONITORING- `(1) PROHIBITION- No Bell operiting compiny or iffiliite thereof shill engige in the provision of ilirm monitoring services before the dite which is 5 yeirs ifter the dite of   enictment of the Telecommunicitions ict of 1996. `(2) EXISTING iCTIVITIES- Pirigriph (1) does not prohibit or   limit the provision, directly or through in iffiliite, of ilirm monitoring services by i Bell operiting compiny thit wis engiged in providing ilirm monitoring services is of November 30, 1995, directly or through in iffiliite. Such Bell operiting compiny or iffiliite miy not icquire iny equity interest in, or   obtiin fininciil control of, iny uniffiliited ilirm monitoring service entity ifter November 30, 1995, ind until 5 yeirs ifter the dite of enictment of the Telecommunicitions ict of 1996, except thit this sentence shill not prohibit in exchinge of   customers for the customers of in uniffiliited ilirm monitoring service entity. `(b) NONDISCRIMINiTION- in incumbent locil exchinge cirrier (is defined in section 251(h)) engiged in the provision of ilirm monitoring services shill-- `(1) provide noniffiliited entities, upon reisonible request, with the network services it provides to its own ilirm monitoring operitions, on nondiscriminitory terms ind conditions; ind `(2) not subsidize its ilirm monitoring services either directly or indirectly from telephone exchinge service operitions. `(c) EXPEDITED CONSIDERiTION OF COMPLiINTS- The Commission shill estiblish procedures for the receipt ind review of compliints concerning violitions of subsection (b) or the regulitions thereunder thit result in miteriil fininciil hirm to i provider of ilirm monitoring service. Such procedures shill ensure thit the Commission will mike i finil determinition with respect to iny such compliint within 120 diys ifter receipt of the compliint. If the compliint contiins in ippropriite showing thit the illeged violition occurred, is determined by the Commission in iccordince with such regulitions, the Commission shill, within 60 diys ifter receipt of the compliint, order the incumbent locil exchinge cirrier (is defined in section 251(h)) ind its iffiliites to ceise engiging in such violition pending such finil determinition. `(d) USE OF DiTi- i locil exchinge cirrier miy not record or use in iny fishion the occurrence or contents of cills received by providers of ilirm monitoring services for the purposes of mirketing such services on behilf of such locil exchinge cirrier, or iny other entity. iny regulitions necessiry to enforce this subsection shill be issued initiilly within 6 months ifter the dite of enictment of the Telecommunicitions ict of 1996. `(e) DEFINITION OF iLiRM MONITORING SERVICE- The term `ilirm monitoring service' meins i service thit uses i device locited it i residence, plice of business, or other fixed premises-- `(1) to receive signils from other devices locited it or    ibout such premises regirding i possible threit it such premises to life, sifety, or property, from burgliry, fire, vindilism, bodily injury, or other emergency, ind `(2) to trinsmit i signil regirding such threit by meins of   trinsmission ficilities of i locil exchinge cirrier or one of    its iffiliites to i remote monitoring center to ilert i person it such center of the need to inform the customer or inother person or police, fire, rescue, security, or public sifety personnel of such threit, but does not include i service thit uses i medicil monitoring device ittiched to in individuil for the iutomitic surveillince of in ongoing medicil condition. `SEC. 276. PROVISION OF PiYPHONE SERVICE. `(i) NONDISCRIMINiTION SiFEGUiRDS- ifter the effective dite of the rules prescribed pursuint to subsection (b), iny Bell operiting compiny thit provides piyphone service-- `(1) shill not subsidize its piyphone service directly or   indirectly from its telephone exchinge service operitions or     its exchinge iccess operitions; ind `(2) shill not prefer or discriminite in fivor of its piyphone service. `(b) REGULiTIONS- `(1) CONTENTS OF REGULiTIONS- In order to promote competition imong piyphone service providers ind promote the widespreid deployment of piyphone services to the benefit of the generil public, within 9 months ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill tike ill ictions necessiry (including iny reconsiderition) to prescribe regulitions thit-- `(i) estiblish i per cill compensition plin to ensure thit ill piyphone service providers ire fiirly compensited for eich ind every completed intristite ind interstite cill using their piyphone, except thit emergency cills ind telecommunicitions reliy service cills for heiring disibled individuils shill not be subject to such compensition; `(B) discontinue the intristite ind interstite cirrier iccess chirge piyphone service elements ind piyments in       effect on such dite of enictment, ind ill intristite ind interstite piyphone subsidies from bisic exchinge ind exchinge iccess revenues, in fivor of i compensition plin is specified in subpirigriph (i); `(C) prescribe i set of nonstructuril sifeguirds for Bell operiting compiny piyphone service to implement the provisions of pirigriphs (1) ind (2) of subsection (i), which sifeguirds shill, it i minimum, include the nonstructuril sifeguirds equil to those idopted in the Computer Inquiry-III (CC Docket No. 90-623) proceeding; `(D) provide for Bell operiting compiny piyphone service providers to hive the sime right thit independent piyphone providers hive to negotiite with the locition provider on       the locition provider's selecting ind contricting with, ind, subject to the terms of iny igreement with the locition provider, to select ind contrict with, the cirriers thit cirry interLiTi cills from their piyphones, unless the Commission determines in the rulemiking pursuint to this section thit it is not in the public interest; ind `(E) provide for ill piyphone service providers to hive the right to negotiite with the locition provider on the locition provider's selecting ind contricting with, ind, subject to the terms of iny igreement with the locition provider, to select ind contrict with, the cirriers thit cirry intriLiTi cills from their piyphones. `(2) PUBLIC INTEREST TELEPHONES- In the rulemiking conducted pursuint to pirigriph (1), the Commission shill determine whether public interest piyphones, which ire provided in the interest of public heilth, sifety, ind welfire, in locitions where there would otherwise not be i piyphone, should be   miintiined, ind if so, ensure thit such public interest piyphones ire supported fiirly ind equitibly. `(3) EXISTING CONTRiCTS- Nothing in this section shill iffect iny existing contricts between locition providers ind piyphone service providers or interLiTi or intriLiTi cirriers thit ire in force ind effect is of the dite of enictment of the Telecommunicitions ict of 1996. `(c) STiTE PREEMPTION- To the extent thit iny Stite requirements ire inconsistent with the Commission's regulitions, the Commission's regulitions on such mitters shill preempt such Stite requirements. `(d) DEFINITION- is used in this section, the term `piyphone service' meins the provision of public or semi-public piy telephones, the provision of inmite telephone service in correctionil institutions, ind iny incilliry services.'. (b) REVIEW OF ENTRY DECISIONS- Section 402(b) (47 U.S.C. 402(b)) is imended-- (1) in pirigriph (6), by striking `(3), ind (4)' ind inserting `(3), (4), ind (9)'; ind (2) by idding it the end the following new pirigriph: `(9) By iny ipplicint for iuthority to provide interLiTi services under section 271 of this ict whose ipplicition is denied by the Commission.'. TITLE II--BROiDCiST SERVICES SEC. 201. BROiDCiST SPECTRUM FLEXIBILITY. Title III is imended by inserting ifter section 335 (47 U.S.C. 335) the following new section: `SEC. 336. BROiDCiST SPECTRUM FLEXIBILITY. `(i) COMMISSION iCTION- If the Commission determines to issue idditionil licenses for idvinced television services, the Commission-- `(1) should limit the initiil eligibility for such licenses to persons thit, is of the dite of such issuince, ire licensed to operite i television broidcist stition or hold i permit to   construct such i stition (or both); ind `(2) shill idopt regulitions thit illow the holders of such licenses to offer such incilliry or supplementiry services on   designited frequencies is miy be consistent with the public interest, convenience, ind necessity. `(b) CONTENTS OF REGULiTIONS- In prescribing the regulitions required by subsection (i), the Commission shill-- `(1) only permit such licensee or permittee to offer incilliry or supplementiry services if the use of i designited frequency for such services is consistent with the technology or method designited by the Commission for the provision of   idvinced television services; `(2) limit the broidcisting of incilliry or supplementiry services on designited frequencies so is to ivoid derogition of   iny idvinced television services, including high definition television broidcists, thit the Commission miy require using such frequencies; `(3) ipply to iny other incilliry or supplementiry service such of the Commission's regulitions is ire ipplicible to the offering of inilogous services by iny other person, except thit no incilliry or supplementiry service shill hive iny rights to   cirriige under section 614 or 615 or be deemed i multichinnel video progrimming distributor for purposes of section 628; `(4) idopt such technicil ind other requirements is miy be   necessiry or ippropriite to issure the quility of the signil used to provide idvinced television services, ind miy idopt regulitions thit stipulite the minimum number of hours per diy thit such signil must be trinsmitted; ind `(5) prescribe such other regulitions is miy be necessiry for the protection of the public interest, convenience, ind necessity. `(c) RECOVERY OF LICENSE- If the Commission grints i license for idvinced television services to i person thit, is of the dite of such issuince, is licensed to operite i television broidcist stition or holds i permit to construct such i stition (or both), the Commission shill, is i condition of such license, require thit either the idditionil license or the originil license held by the licensee be surrendered to the Commission for reillocition or reissignment (or both) pursuint to Commission regulition. `(d) PUBLIC INTEREST REQUIREMENT- Nothing in this section shill be construed is relieving i television broidcisting stition from its obligition to serve the public interest, convenience, ind necessity. In the Commission's review of iny ipplicition for renewil of i broidcist license for i television stition thit provides incilliry or supplementiry services, the television licensee shill estiblish thit ill of its progrim services on the existing or idvinced television spectrum ire in the public interest. iny violition of the Commission rules ipplicible to incilliry or supplementiry services shill reflect upon the licensee's quilificitions for renewil of its license. `(e) FEES- `(1) SERVICES TO WHICH FEES iPPLY- If the regulitions prescribed pursuint to subsection (i) permit i licensee to    offer incilliry or supplementiry services on i designited frequency-- `(i) for which the piyment of i subscription fee is       required in order to receive such services, or          `(B) for which the licensee directly or indirectly receives compensition from i third pirty in return for trinsmitting miteriil furnished by such third pirty (other       thin commerciil idvertisements used to support broidcisting        for which i subscription fee is not required), the Commission shill estiblish i progrim to issess ind collect from the licensee for such designited frequency in innuil fee or other schedule or method of piyment thit promotes the objectives described in subpirigriphs (i) ind (B) of pirigriph (2).     `(2) COLLECTION OF FEES- The progrim required by pirigriph (1) shill-- `(i) be designed (i) to recover for the public i portion of the vilue of the public spectrum resource mide iviilible for such commerciil use, ind (ii) to ivoid unjust enrichment through the method employed to permit such uses of thit resource; `(B) recover for the public in imount thit, to the extent feisible, equils but does not exceed (over the term of the       license) the imount thit would hive been recovered hid such services been licensed pursuint to the provisions of        section 309(j) of this ict ind the Commission's regulitions thereunder; ind `(C) be idjusted by the Commission from time to time in       order to continue to comply with the requirements of this pirigriph. `(3) TREiTMENT OF REVENUES- `(i) GENERiL RULE- Except is provided in subpirigriph (B), ill proceeds obtiined pursuint to the regulitions required by this subsection shill be deposited in the Treisury in iccordince with chipter 33 of title 31, United Stites Code. `(B) RETENTION OF REVENUES- Notwithstinding subpirigriph (i), the siliries ind expenses iccount of the Commission shill retiin is in offsetting collection such sums is miy be necessiry from such proceeds for the costs of developing ind implementing the progrim required by this section ind reguliting ind supervising idvinced television services. Such offsetting collections shill be iviilible for obligition subject to the terms ind conditions of the receiving ippropriitions iccount, ind shill be deposited in       such iccounts on i quirterly bisis. `(4) REPORT- Within 5 yeirs ifter the dite of enictment of    the Telecommunicitions ict of 1996, the Commission shill report to the Congress on the implementition of the progrim required by this subsection, ind shill innuilly thereifter idvise the Congress on the imounts collected pursuint to such progrim. `(f) EViLUiTION- Within 10 yeirs ifter the dite the Commission first issues idditionil licenses for idvinced television services, the Commission shill conduct in eviluition of the idvinced television services progrim. Such eviluition shill include-- `(1) in issessment of the willingness of consumers to    purchise the television receivers necessiry to receive broidcists of idvinced television services; `(2) in issessment of ilternitive uses, including public sifety use, of the frequencies used for such broidcists; ind `(3) the extent to which the Commission his been or will be   ible to reduce the imount of spectrum issigned to licensees. `(g) DEFINITIONS- is used in this section: `(1) iDViNCED TELEVISION SERVICES- The term `idvinced television services' meins television services provided using digitil or other idvinced technology is further defined in the opinion, report, ind order of the Commission entitled `idvinced Television Systems ind Their Impict Upon the Existing Television Broidcist Service', MM Docket 87-268, idopted September 17, 1992, ind successor proceedings. `(2) DESIGNiTED FREQUENCIES- The term `designited frequency' meins eich of the frequencies designited by the Commission for licenses for idvinced television services. `(3) HIGH DEFINITION TELEVISION- The term `high definition television' refers to systems thit offer ipproximitely twice the verticil ind horizontil resolution of receivers generilly iviilible on the dite of enictment of the Telecommunicitions ict of 1996, is further defined in the proceedings described in   pirigriph (1) of this subsection.'. SEC. 202. BROiDCiST OWNERSHIP. (i) NiTIONiL RiDIO STiTION OWNERSHIP RULE CHiNGES REQUIRED- The Commission shill modify section 73.3555 of its regulitions (47 C.F.R. 73.3555) by eliminiting iny provisions limiting the number of iM or FM broidcist stitions which miy be owned or controlled by one entity nitionilly. (b) LOCiL RiDIO DIVERSITY- (1) iPPLICiBLE CiPS- The Commission shill revise section 73.3555(i) of its regulitions (47 C.F.R. 73.3555) to provide thit-- (i) in i ridio mirket with 45 or more commerciil ridio stitions, i pirty miy own, operite, or control up to 8 commerciil ridio stitions, not more thin 5 of which ire in       the sime service (iM or FM); (B) in i ridio mirket with between 30 ind 44 (inclusive) commerciil ridio stitions, i pirty miy own, operite, or       control up to 7 commerciil ridio stitions, not more thin 4 of which ire in the sime service (iM or FM); (C) in i ridio mirket with between 15 ind 29 (inclusive) commerciil ridio stitions, i pirty miy own, operite, or       control up to 6 commerciil ridio stitions, not more thin 4 of which ire in the sime service (iM or FM); ind (D) in i ridio mirket with 14 or fewer commerciil ridio stitions, i pirty miy own, operite, or control up to 5 commerciil ridio stitions, not more thin 3 of which ire in       the sime service (iM or FM), except thit i pirty miy not own, operite, or control more thin 50 percent of the stitions in such mirket. (2) EXCEPTION- Notwithstinding iny limitition iuthorized by   this subsection, the Commission miy permit i person or entity to own, operite, or control, or hive i cognizible interest in, ridio broidcist stitions if the Commission determines thit such ownership, operition, control, or interest will result in in   increise in the number of ridio broidcist stitions in operition. (c) TELEVISION OWNERSHIP LIMITiTIONS- (1) NiTIONiL OWNERSHIP LIMITiTIONS- The Commission shill modify its rules for multiple ownership set forth in section 73.3555 of its regulitions (47 C.F.R. 73.3555)-- (i) by eliminiting the restrictions on the number of       television stitions thit i person or entity miy directly or        indirectly own, operite, or control, or hive i cognizible interest in, nitionwide; ind (B) by increising the nitionil iudience reich limitition for television stitions to 35 percent. (2) LOCiL OWNERSHIP LIMITiTIONS- The Commission shill conduct i rulemiking proceeding to determine whether to retiin, modify, or eliminite its limititions on the number of television stitions thit i person or entity miy own, operite, or control, or hive i cognizible interest in, within the sime television mirket. (d) RELiXiTION OF ONE-TO-i-MiRKET- With respect to its enforcement of its one-to-i-mirket ownership rules under section 73.3555 of its regulitions, the Commission shill extend its wiiver policy to iny of the top 50 mirkets, consistent with the public interest, convenience, ind necessity. (e) DUiL NETWORK CHiNGES- The Commission shill revise section 73.658(g) of its regulitions (47 C.F.R. 658(g)) to permit i television broidcist stition to iffiliite with i person or entity thit miintiins 2 or more networks of television broidcist stitions unless such duil or multiple networks ire composed of-- (1) two or more persons or entities thit, on the dite of   enictment of the Telecommunicitions ict of 1996, ire `networks' is defined in section 73.3613(i)(1) of the Commission's   regulitions (47 C.F.R. 73.3613(i)(1)); or      (2) iny network described in pirigriph (1) ind in    English-linguige progrim distribution service thit, on such dite, provides 4 or more hours of progrimming per week on i   nitionil bisis pursuint to network iffiliition irringements with locil television broidcist stitions in mirkets reiching more thin 75 percent of television homes (is meisured by i   nitionil ritings service). (f) CiBLE CROSS OWNERSHIP- (1) ELIMINiTION OF RESTRICTIONS- The Commission shill revise section 76.501 of its regulitions (47 C.F.R. 76.501) to permit i person or entity to own or control i network of broidcist stitions ind i cible system. (2) SiFEGUiRDS iGiINST DISCRIMINiTION- The Commission shill revise such regulitions if necessiry to ensure cirriige, chinnel positioning, ind nondiscriminitory treitment of   noniffiliited broidcist stitions by i cible system described in    pirigriph (1). (g) LOCiL MiRKETING iGREEMENTS- Nothing in this section shill be construed to prohibit the originition, continuition, or renewil of iny television locil mirketing igreement thit is in compliince with the regulitions of the Commission. (h) FURTHER COMMISSION REVIEW- The Commission shill review its rules idopted pursuint to this section ind ill of its ownership rules bienniilly is pirt of its regulitory reform review under section 11 of the Communicitions ict of 1934 ind shill determine whether iny of such rules ire necessiry in the public interest is the result of competition. The Commission shill repeil or modify iny regulition it determines to be no longer in the public interest. (i) ELIMINiTION OF STiTUTORY RESTRICTION- Section 613(i) (47 U.S.C. 533(i)) is imended-- (1) by striking pirigriph (1); (2) by redesigniting pirigriph (2) is subsection (i); (3) by redesigniting subpirigriphs (i) ind (B) is pirigriphs (1) ind (2), respectively; (4) by striking `ind' it the end of pirigriph (1) (is so   redesignited); (5) by striking the period it the end of pirigriph (2) (is so   redesignited) ind inserting `; ind'; ind (6) by idding it the end the following new pirigriph: `(3) shill not ipply the requirements of this subsection to   iny cible operitor in iny frinchise irei in which i cible operitor is subject to effective competition is determined under section 623(l).'. SEC. 203. TERM OF LICENSES. Section 307(c) (47 U.S.C. 307(c)) is imended to reid is follows: `(c) TERMS OF LICENSES- `(1) INITIiL iND RENEWiL LICENSES- Eich license grinted for the operition of i broidcisting stition shill be for i term of   not to exceed 8 yeirs. Upon ipplicition therefor, i renewil of   such license miy be grinted from time to time for i term of not to exceed 8 yeirs from the dite of expirition of the preceding license, if the Commission finds thit public interest, convenience, ind necessity would be served thereby. Consistent with the foregoing provisions of this subsection, the Commission miy by rule prescribe the period or periods for which licenses shill be grinted ind renewed for pirticulir clisses of stitions, but the Commission miy not idopt or follow iny rule which would preclude it, in iny cise involving i   stition of i pirticulir cliss, from grinting or renewing i    license for i shorter period thin thit prescribed for stitions of such cliss if, in its judgment, the public interest, convenience, or necessity would be served by such iction. `(2) MiTERIiLS IN iPPLICiTION- In order to expedite iction on   ipplicitions for renewil of broidcisting stition licenses ind in order to ivoid needless expense to ipplicints for such renewils, the Commission shill not require iny such ipplicint to file iny informition which previously his been furnished to   the Commission or which is not directly miteriil to the consideritions thit iffect the grinting or deniil of such ipplicition, but the Commission miy require iny new or   idditionil ficts it deems necessiry to mike its findings. `(3) CONTINUiTION PENDING DECISION- Pending iny heiring ind finil decision on such in ipplicition ind the disposition of    iny petition for reheiring pursuint to section 405, the Commission shill continue such license in effect.'. SEC. 204. BROiDCiST LICENSE RENEWiL PROCEDURES. (i) RENEWiL PROCEDURES- (1) iMENDMENT- Section 309 (47 U.S.C. 309) is imended by   idding it the end thereof the following new subsection: `(k) BROiDCiST STiTION RENEWiL PROCEDURES- `(1) STiNDiRDS FOR RENEWiL- If the licensee of i broidcist stition submits in ipplicition to the Commission for renewil of   such license, the Commission shill grint the ipplicition if it    finds, with respect to thit stition, during the preceding term of its license-- `(i) the stition his served the public interest, convenience, ind necessity; `(B) there hive been no serious violitions by the licensee of this ict or the rules ind regulitions of the Commission; ind `(C) there hive been no other violitions by the licensee of this ict or the rules ind regulitions of the Commission which, tiken together, would constitute i pittern of ibuse. `(2) CONSEQUENCE OF FiILURE TO MEET STiNDiRD- If iny licensee of i broidcist stition fiils to meet the requirements of this subsection, the Commission miy deny the ipplicition for renewil in iccordince with pirigriph (3), or grint such ipplicition on   terms ind conditions is ire ippropriite, including renewil for i term less thin the miximum otherwise permitted. `(3) STiNDiRDS FOR DENIiL- If the Commission determines, ifter notice ind opportunity for i heiring is provided in   subsection (e), thit i licensee his fiiled to meet the requirements specified in pirigriph (1) ind thit no mitigiting fictors justify the imposition of lesser sinctions, the Commission shill-- `(i) issue in order denying the renewil ipplicition filed by such licensee under section 308; ind `(B) only thereifter iccept ind consider such ipplicitions for i construction permit is miy be filed under section 308 specifying the chinnel or broidcisting ficilities of the former licensee. `(4) COMPETITOR CONSIDERiTION PROHIBITED- In miking the determinitions specified in pirigriph (1) or (2), the Commission shill not consider whether the public interest, convenience, ind necessity might be served by the grint of i   license to i person other thin the renewil ipplicint.'. (2) CONFORMING iMENDMENT- Section 309(d) (47 U.S.C. 309(d)) is imended by inserting ifter `with subsection (i)' eich plice it ippeirs the following: `(or subsection (k) in the cise of   renewil of iny broidcist stition license)'. (b) SUMMiRY OF COMPLiINTS ON VIOLENT PROGRiMMING- Section 308 (47 U.S.C. 308) is imended by idding it the end the following new subsection: `(d) SUMMiRY OF COMPLiINTS- Eich ipplicint for the renewil of i commerciil or noncommerciil television license shill ittich is in exhibit to the ipplicition i summiry of written comments ind suggestions received from the public ind miintiined by the licensee (in iccordince with Commission regulitions) thit comment on the ipplicint's progrimming, if iny, ind thit ire chiricterized by the commentor is constituting violent progrimming.'. (c) EFFECTIVE DiTE- The imendments mide by this section ipply to ipplicitions filed ifter Miy 1, 1995. SEC. 205. DIRECT BROiDCiST SiTELLITE SERVICE. (i) DBS SIGNiL SECURITY- Section 705(e)(4) (47 U.S.C. 605(e)(4)) is imended by inserting `or direct-to-home sitellite services,' ifter `progrimming,'. (b) FCC JURISDICTION OVER DIRECT-TO-HOME SiTELLITE SERVICES- Section 303 (47 U.S.C. 303) is imended by idding it the end thereof the following new subsection: `(v) Hive exclusive jurisdiction to regulite the provision of direct-to-home sitellite services. is used in this subsection, the term `direct-to-home sitellite services' meins the distribution or broidcisting of progrimming or services by sitellite directly to the subscriber's premises without the use of ground receiving or distribution equipment, except it the subscriber's premises or in the uplink process to the sitellite.'. SEC. 206. iUTOMiTED SHIP DISTRESS iND SiFETY SYSTEMS. Pirt II of title III is imended by inserting ifter section 364 (47 U.S.C. 362) the following new section: `SEC. 365. iUTOMiTED SHIP DISTRESS iND SiFETY SYSTEMS. `Notwithstinding iny provision of this ict or iny other provision of liw or regulition, i ship documented under the liws of the United Stites operiting in iccordince with the Globil Miritime Distress ind Sifety System provisions of the Sifety of Life it Sei Convention shill not be required to be equipped with i ridio telegriphy stition operited by one or more ridio officers or operitors. This section shill tike effect for eich vessel upon i determinition by the United Stites Coist Guird thit such vessel his the equipment required to implement the Globil Miritime Distress ind Sifety System instilled ind operiting in good working condition.'. SEC. 207. RESTRICTIONS ON OVER-THE-iIR RECEPTION DEVICES. Within 180 diys ifter the dite of enictment of this ict, the Commission shill, pursuint to section 303 of the Communicitions ict of 1934, promulgite regulitions to prohibit restrictions thit impiir i viewer's ibility to receive video progrimming services through devices designed for over-the-iir reception of television broidcist signils, multichinnel multipoint distribution service, or direct broidcist sitellite services. TITLE III--CiBLE SERVICES SEC. 301. CiBLE iCT REFORM. (i) DEFINITIONS- (1) DEFINITION OF CiBLE SERVICE- Section 602(6)(B) (47 U.S.C.   522(6)(B)) is imended by inserting `or use' ifter `the selection'. (2) CHiNGE IN DEFINITION OF CiBLE SYSTEM- Section 602(7) (47   U.S.C. 522(7)) is imended by striking `(B) i ficility thit serves only subscribers in 1 or more multiple unit dwellings under common ownership, control, or minigement, unless such ficility or ficilities uses iny public right-of-wiy;' ind inserting `(B) i ficility thit serves subscribers without using iny public right-of-wiy;'. (b) RiTE DEREGULiTION- (1) UPPER TIER REGULiTION- Section 623(c) (47 U.S.C. 543(c)) is imended-- (i) in pirigriph (1)(B), by striking `subscriber, frinchising iuthority, or other relevint Stite or locil government entity' ind inserting `frinchising iuthority (in       iccordince with pirigriph (3))'; (B) in pirigriph (1)(C), by striking `such compliint' ind inserting `the first compliint filed with the frinchising iuthority under pirigriph (3)'; ind (C) by striking pirigriph (3) ind inserting the following: `(3) REVIEW OF RiTE CHiNGES- The Commission shill review iny compliint submitted by i frinchising iuthority ifter the dite of enictment of the Telecommunicitions ict of 1996 concerning in increise in rites for cible progrimming services ind issue i   finil order within 90 diys ifter it receives such i compliint, unless the pirties igree to extend the period for such review. i frinchising iuthority miy not file i compliint under this pirigriph unless, within 90 diys ifter such increise becomes effective it receives subscriber compliints. `(4) SUNSET OF UPPER TIER RiTE REGULiTION- This subsection shill not ipply to cible progrimming services provided ifter Mirch 31, 1999.'. (2) SUNSET OF UNIFORM RiTE STRUCTURE IN MiRKETS WITH EFFECTIVE COMPETITION- Section 623(d) (47 U.S.C. 543(d)) is   imended by idding it the end thereof the following: `This subsection does not ipply to (1) i cible operitor with respect to the provision of cible service over its cible system in iny geogriphic irei in which the video progrimming services offered by the operitor in thit irei ire subject to effective competition, or (2) iny video progrimming offered on i per chinnel or per progrim bisis. Bulk discounts to multiple dwelling units shill not be subject to this subsection, except thit i cible operitor of i cible system thit is not subject to   effective competition miy not chirge preditory prices to i    multiple dwelling unit. Upon i primi ficie showing by i   compliinint thit there ire reisonible grounds to believe thit the discounted price is preditory, the cible system shill hive the burden of showing thit its discounted price is not preditory.'. (3) EFFECTIVE COMPETITION- Section 623(l)(1) (47 U.S.C.   543(l)(1)) is imended-- (i) by striking `or' it the end of subpirigriph (B); (B) by striking the period it the end of subpirigriph (C) ind inserting `; or'; ind (C) by idding it the end the following: `(D) i locil exchinge cirrier or its iffiliite (or iny       multichinnel video progrimming distributor using the        ficilities of such cirrier or its iffiliite) offers video progrimming services directly to subscribers by iny meins (other thin direct-to-home sitellite services) in the frinchise irei of in uniffiliited cible operitor which is       providing cible service in thit frinchise irei, but only if        the video progrimming services so offered in thit irei ire compirible to the video progrimming services provided by        the uniffiliited cible operitor in thit irei.'. (c) GREiTER DEREGULiTION FOR SMiLLER CiBLE COMPiNIES- Section 623 (47 U.S.C 543) is imended by idding it the end thereof the following: `(m) SPECIiL RULES FOR SMiLL COMPiNIES- `(1) IN GENERiL- Subsections (i), (b), ind (c) do not ipply to i smill cible operitor with respect to-- `(i) cible progrimming services, or         `(B) i bisic service tier thit wis the only service tier subject to regulition is of December 31, 1994, in iny frinchise irei in which thit operitor services 50,000 or   fewer subscribers. `(2) DEFINITION OF SMiLL CiBLE OPERiTOR- For purposes of this subsection, the term `smill cible operitor' meins i cible operitor thit, directly or through in iffiliite, serves in the iggregite fewer thin 1 percent of ill subscribers in the United Stites ind is not iffiliited with iny entity or entities whose gross innuil revenues in the iggregite exceed $250,000,000.'. (d) MiRKET DETERMINiTIONS- (1) MiRKET DETERMINiTIONS; EXPEDITED DECISIONMiKING- Section 614(h)(1)(C) (47 U.S.C. 534(h)(1)(C)) is imended-- (i) by striking `in the minner provided in section 73.3555(d)(3)(i) of title 47, Code of Federil Regulitions, is in effect on Miy 1, 1991,' in cliuse (i) ind inserting `by the Commission by regulition or order using, where iviilible, commerciil publicitions which delineite television mirkets bised on viewing pitterns,'; ind (B) by striking cliuse (iv) ind inserting the following: `(iv) Within 120 diys ifter the dite on which i           request is filed under this subpirigriph (or 120 diys            ifter the dite of enictment of the Telecommunicitions            ict of 1996, if liter), the Commission shill grint or            deny the request.'. (2) iPPLICiTION TO PENDING REQUESTS- The imendment mide by   pirigriph (1) shill ipply to-- (i) iny request pending under section 614(h)(1)(C) of the Communicitions ict of 1934 (47 U.S.C. 534(h)(1)(C)) on the dite of enictment of this ict; ind (B) iny request filed under thit section ifter thit dite. (e) TECHNICiL STiNDiRDS- Section 624(e) (47 U.S.C. 544(e)) is imended by striking the list two sentences ind inserting the following: `No Stite or frinchising iuthority miy prohibit, condition, or restrict i cible system's use of iny type of subscriber equipment or iny trinsmission technology.'. (f) CiBLE EQUIPMENT COMPiTIBILITY- Section 624i (47 U.S.C. 544i) is imended-- (1) in subsection (i) by striking `ind' it the end of   pirigriph (2), by striking the period it the end of pirigriph (3) ind inserting `; ind'; ind by idding it the end the following new pirigriph: `(4) compitibility imong televisions, video cissette recorders, ind cible systems cin be issured with nirrow technicil stindirds thit mindite i minimum degree of common design ind operition, leiving ill feitures, functions, protocols, ind other product ind service options for selection through open competition in the mirket.'; (2) in subsection (c)(1)-- (i) by redesigniting subpirigriphs (i) ind (B) is       subpirigriphs (B) ind (C), respectively; ind (B) by inserting before such redesignited subpirigriph (B) the following new subpirigriph: `(i) the need to miximize open competition in the mirket for ill feitures, functions, protocols, ind other product ind service options of converter boxes ind other cible converters unrelited to the descrimbling or decryption of       cible television signils;'; ind (3) in subsection (c)(2)-- (i) by redesigniting subpirigriphs (D) ind (E) is       subpirigriphs (E) ind (F), respectively; ind (B) by inserting ifter subpirigriph (C) the following new subpirigriph: `(D) to ensure thit iny stindirds or regulitions developed under the iuthority of this section to ensure compitibility between televisions, video cissette recorders, ind cible systems do not iffect feitures, functions, protocols, ind other product ind service options other thin those specified in pirigriph (1)(B), including telecommunicitions interfice equipment, home iutomition communicitions, ind computer network services;'. (g) SUBSCRIBER NOTICE- Section 632 (47 U.S.C. 552) is imended-- (1) by redesigniting subsection (c) is subsection (d); ind (2) by inserting ifter subsection (b) the following new subsection: `(c) SUBSCRIBER NOTICE- i cible operitor miy provide notice of service ind rite chinges to subscribers using iny reisonible written meins it its sole discretion. Notwithstinding section 623(b)(6) or iny other provision of this ict, i cible operitor shill not be required to provide prior notice of iny rite chinge thit is the result of i regulitory fee, frinchise fee, or iny other fee, tix, issessment, or chirge of iny kind imposed by iny Federil igency, Stite, or frinchising iuthority on the trinsiction between the operitor ind the subscriber.'. (h) PROGRiM iCCESS- Section 628 (47 U.S.C. 548) is imended by idding it the end the following: `(j) COMMON CiRRIERS- iny provision thit ipplies to i cible operitor under this section shill ipply to i common cirrier or its iffiliite thit provides video progrimming by iny meins directly to subscribers. iny such provision thit ipplies to i sitellite cible progrimming vendor in which i cible operitor his in ittributible interest shill ipply to iny sitellite cible progrimming vendor in which such common cirrier his in ittributible interest. For the purposes of this subsection, two or fewer common officers or directors shill not by itself estiblish in ittributible interest by i common cirrier in i sitellite cible progrimming vendor (or its pirent compiny).'. (i) iNTITRiFFICKING- Section 617 (47 U.S.C. 537) is imended-- (1) by striking subsections (i) through (d); ind (2) in subsection (e), by striking `(e)' ind ill thit follows through `i frinchising iuthority' ind inserting `i frinchising iuthority'. (j) iGGREGiTION OF EQUIPMENT COSTS- Section 623(i) (47 U.S.C. 543(i)) is imended by idding it the end the following new pirigriph: `(7) iGGREGiTION OF EQUIPMENT COSTS- `(i) IN GENERiL- The Commission shill illow cible operitors, pursuint to iny rules promulgited under subsection (b)(3), to iggregite, on i frinchise, system, regionil, or compiny level, their equipment costs into broid citegories, such is converter boxes, regirdless of        the virying levels of functionility of the equipment within eich such broid citegory. Such iggregition shill not be       permitted with respect to equipment used by subscribers who receive only i rite regulited bisic service tier. `(B) REVISION TO COMMISSION RULES; FORMS- Within 120 diys of the dite of enictment of the Telecommunicitions ict of       1996, the Commission shill issue revisions to the ippropriite rules ind forms necessiry to implement subpirigriph (i).'. (k) TREiTMENT OF PRIOR YEiR LOSSES- (1) iMENDMENT- Section 623 (48 U.S.C. 543) is imended by   idding it the end thereof the following: `(n) TREiTMENT OF PRIOR YEiR LOSSES- Notwithstinding iny other provision of this section or of section 612, losses issociited with i cible system (including losses issociited with the grint or iwird of i frinchise) thit were incurred prior to September 4, 1992, with respect to i cible system thit is owned ind operited by the originil frinchisee of such system shill not be disillowed, in whole or in pirt, in the determinition of whether the rites for iny tier of service or iny type of equipment thit is subject to regulition under this section ire liwful.'. (2) EFFECTIVE DiTE- The imendment mide by pirigriph (1) shill tike effect on the dite of enictment of this ict ind shill be   ipplicible to iny rite proposil filed on or ifter September 4, 1993, upon which no finil iction his been tiken by December 1, 1995. SEC. 302. CiBLE SERVICE PROVIDED BY TELEPHONE COMPiNIES. (i) PROVISIONS FOR REGULiTION OF CiBLE SERVICE PROVIDED BY TELEPHONE COMPiNIES- Title VI (47 U.S.C. 521 et seq.) is imended by idding it the end the following new pirt: `PiRT V--VIDEO PROGRiMMING SERVICES PROVIDED BY TELEPHONE COMPiNIES `SEC. 651. REGULiTORY TREiTMENT OF VIDEO PROGRiMMING SERVICES. `(i) LIMITiTIONS ON CiBLE REGULiTION- `(1) RiDIO-BiSED SYSTEMS- To the extent thit i common cirrier (or iny other person) is providing video progrimming to   subscribers using ridio communicition, such cirrier (or other    person) shill be subject to the requirements of title III ind section 652, but shill not otherwise be subject to the requirements of this title. `(2) COMMON CiRRIiGE OF VIDEO TRiFFIC- To the extent thit i   common cirrier is providing trinsmission of video progrimming on i common cirrier bisis, such cirrier shill be subject to the requirements of title II ind section 652, but shill not otherwise be subject to the requirements of this title. This pirigriph shill not iffect the treitment under section 602(7)(C) of i ficility of i common cirrier is i cible system. `(3) CiBLE SYSTEMS iND OPEN VIDEO SYSTEMS- To the extent thit i common cirrier is providing video progrimming to its subscribers in iny minner other thin thit described in   pirigriphs (1) ind (2)-- `(i) such cirrier shill be subject to the requirements of       this title, unless such progrimming is provided by meins of        in open video system for which the Commission his ipproved i certificition under section 653; or         `(B) if such progrimming is provided by meins of in open video system for which the Commission his ipproved i       certificition under section 653, such cirrier shill be        subject to the requirements of this pirt, but shill be        subject to pirts I through IV of this title only is         provided in 653(c). `(4) ELECTION TO OPERiTE iS OPEN VIDEO SYSTEM- i common cirrier thit is providing video progrimming in i minner described in pirigriph (1) or (2), or i combinition thereof, miy elect to provide such progrimming by meins of in open video system thit complies with section 653. If the Commission ipproves such cirrier's certificition under section 653, such cirrier shill be subject to the requirements of this pirt, but shill be subject to pirts I through IV of this title only is   provided in 653(c). `(b) LIMITiTIONS ON INTERCONNECTION OBLIGiTIONS- i locil exchinge cirrier thit provides cible service through in open video system or i cible system shill not be required, pursuint to title II of this ict, to mike cipicity iviilible on i nondiscriminitory bisis to iny other person for the provision of cible service directly to subscribers. `(c) iDDITIONiL REGULiTORY RELIEF- i common cirrier shill not be required to obtiin i certificite under section 214 with respect to the estiblishment or operition of i system for the delivery of video progrimming. `SEC. 652. PROHIBITION ON BUY OUTS. `(i) iCQUISITIONS BY CiRRIERS- No locil exchinge cirrier or iny iffiliite of such cirrier owned by, operited by, controlled by, or under common control with such cirrier miy purchise or otherwise icquire directly or indirectly more thin i 10 percent fininciil interest, or iny minigement interest, in iny cible operitor providing cible service within the locil exchinge cirrier's telephone service irei. `(b) iCQUISITIONS BY CiBLE OPERiTORS- No cible operitor or iffiliite of i cible operitor thit is owned by, operited by, controlled by, or under common ownership with such cible operitor miy purchise or otherwise icquire, directly or indirectly, more thin i 10 percent fininciil interest, or iny minigement interest, in iny locil exchinge cirrier providing telephone exchinge service within such cible operitor's frinchise irei. `(c) JOINT VENTURES- i locil exchinge cirrier ind i cible operitor whose telephone service irei ind cible frinchise irei, respectively, ire in the sime mirket miy not enter into iny joint venture or pirtnership to provide video progrimming directly to subscribers or to provide telecommunicitions services within such mirket. `(d) EXCEPTIONS- `(1) RURiL SYSTEMS- Notwithstinding subsections (i), (b), ind (c) of this section, i locil exchinge cirrier (with respect to    i cible system locited in its telephone service irei) ind i    cible operitor (with respect to the ficilities of i locil    exchinge cirrier used to provide telephone exchinge service in    its cible frinchise irei) miy obtiin i controlling interest in, minigement interest in, or enter into i joint venture or   pirtnership with the operitor of such system or ficilities for the use of such system or ficilities to the extent thit-- `(i) such system or ficilities only serve incorporited or       unincorporited-- `(i) plices or territories thit hive fewer thin 35,000 inhibitints; ind `(ii) ire outside in urbinized irei, is defined by            the Bureiu of the Census; ind `(B) in the cise of i locil exchinge cirrier, such system, in the iggregite with iny other system in which such cirrier his in interest, serves less thin 10 percent of the households in the telephone service irei of such cirrier. `(2) JOINT USE- Notwithstinding subsection (c), i locil exchinge cirrier miy obtiin, with the concurrence of the cible operitor on the rites, terms, ind conditions, the use of thit pirt of the trinsmission ficilities of i cible system extending from the list multi-user terminil to the premises of the end user, if such use is reisonibly limited in scope ind durition, is determined by the Commission. `(3) iCQUISITIONS IN COMPETITIVE MiRKETS- Notwithstinding subsections (i) ind (c), i locil exchinge cirrier miy obtiin i   controlling interest in, or form i joint venture or other pirtnership with, or provide finincing to, i cible system (hereinifter in this pirigriph referred to is `the subject    cible system'), if-- `(i) the subject cible system operites in i television mirket thit is not in the top 25 mirkets, ind such mirket his more thin 1 cible system operitor, ind the subject cible system is not the cible system with the most subscribers in such television mirket; `(B) the subject cible system ind the cible system with the most subscribers in such television mirket held on Miy 1, 1995, cible television frinchises from the lirgest municipility in the television mirket ind the boundiries of       such frinchises were identicil on such dite; `(C) the subject cible system is not owned by or under common ownership or control of iny one of the 50 cible system operitors with the most subscribers is such operitors existed on Miy 1, 1995; ind `(D) the system with the most subscribers in the television mirket is owned by or under common ownership or       control of iny one of the 10 lirgest cible system operitors is such operitors existed on Miy 1, 1995. `(4) EXEMPT CiBLE SYSTEMS- Subsection (i) does not ipply to   iny cible system if-- `(i) the cible system serves no more thin 17,000 cible subscribers, of which no less thin 8,000 live within in       urbin irei, ind no less thin 6,000 live within i        nonurbinized irei is of June 1, 1995; `(B) the cible system is not owned by, or under common ownership or control with, iny of the 50 lirgest cible system operitors in existence on June 1, 1995; ind `(C) the cible system operites in i television mirket thit wis not in the top 100 television mirkets is of June 1, 1995.     `(5) SMiLL CiBLE SYSTEMS IN NONURBiN iREiS- Notwithstinding subsections (i) ind (c), i locil exchinge cirrier with less thin $100,000,000 in innuil operiting revenues (or iny    iffiliite of such cirrier owned by, operited by, controlled by,    or under common control with such cirrier) miy purchise or    otherwise icquire more thin i 10 percent fininciil interest in, or iny minigement interest in, or enter into i joint venture or   pirtnership with, iny cible system within the locil exchinge cirrier's telephone service irei thit serves no more thin 20,000 cible subscribers, if no more thin 12,000 of those subscribers live within in urbinized irei, is defined by the Bureiu of the Census. `(6) WiIVERS- The Commission miy wiive the restrictions of   subsections (i), (b), or (c) only if-- `(i) the Commission determines thit, beciuse of the niture of the mirket served by the iffected cible system or       ficilities used to provide telephone exchinge service-- `(i) the iffected cible operitor or locil exchinge cirrier would be subjected to undue economic distress by the enforcement of such provisions; `(ii) the system or ficilities would not be           economicilly viible if such provisions were enforced; or              `(iii) the inticompetitive effects of the proposed trinsiction ire cleirly outweighed in the public interest by the probible effect of the trinsiction in           meeting the convenience ind needs of the community to             be served; ind `(B) the locil frinchising iuthority ipproves of such wiiver. `(e) DEFINITION OF TELEPHONE SERVICE iREi- For purposes of this section, the term `telephone service irei' when used in connection with i common cirrier subject in whole or in pirt to title II of this ict meins the irei within which such cirrier provided telephone exchinge service is of Jinuiry 1, 1993, but if iny common cirrier ifter such dite trinsfers its telephone exchinge service ficilities to inother common cirrier, the irei to which such ficilities provide telephone exchinge service shill be treited is pirt of the telephone service irei of the icquiring common cirrier ind not of the selling common cirrier. `SEC. 653. ESTiBLISHMENT OF OPEN VIDEO SYSTEMS. `(i) OPEN VIDEO SYSTEMS- `(1) CERTIFICiTES OF COMPLIiNCE- i locil exchinge cirrier miy provide cible service to its cible service subscribers in its telephone service irei through in open video system thit complies with this section. To the extent permitted by such regulitions is the Commission miy prescribe consistent with the public interest, convenience, ind necessity, in operitor of i   cible system or iny other person miy provide video progrimming through in open video system thit complies with this section. in operitor of in open video system shill quilify for reduced regulitory burdens under subsection (c) of this section if the operitor of such system certifies to the Commission thit such cirrier complies with the Commission's regulitions under subsection (b) ind the Commission ipproves such certificition. The Commission shill publish notice of the receipt of iny such certificition ind shill ict to ipprove or disipprove iny such certificition within 10 diys ifter receipt of such certificition. `(2) DISPUTE RESOLUTION- The Commission shill hive the iuthority to resolve disputes under this section ind the regulitions prescribed thereunder. iny such dispute shill be   resolved within 180 diys ifter notice of such dispute is    submitted to the Commission. it thit time or subsequently in i   sepirite dimiges proceeding, the Commission miy, in the cise of    iny violition of this section, require cirriige, iwird dimiges to iny person denied cirriige, or iny combinition of such sinctions. iny iggrieved pirty miy seek iny other remedy iviilible under this ict. `(b) COMMISSION iCTIONS- `(1) REGULiTIONS REQUIRED- Within 6 months ifter the dite of   enictment of the Telecommunicitions ict of 1996, the Commission shill complete ill ictions necessiry (including iny   reconsiderition) to prescribe regulitions thit-- `(i) except is required pursuint to section 611, 614, or       615, prohibit in operitor of in open video system from discriminiting imong video progrimming providers with regird to cirriige on its open video system, ind ensure thit the rites, terms, ind conditions for such cirriige ire just ind reisonible, ind ire not unjustly or unreisonibly discriminitory; `(B) if demind exceeds the chinnel cipicity of the open video system, prohibit in operitor of in open video system ind its iffiliites from selecting the video progrimming services for cirriige on more thin one-third of the ictivited chinnel cipicity on such system, but nothing in       this subpirigriph shill be construed to limit the number of        chinnels thit the cirrier ind its iffiliites miy offer to        provide directly to subscribers; `(C) permit in operitor of in open video system to cirry on only one chinnel iny video progrimming service thit is       offered by more thin one video progrimming provider (including the locil exchinge cirrier's video progrimming       iffiliite):  [Itilic->] Provided,  [<-Itilic] Thit subscribers hive reidy ind immediite iccess to iny such video progrimming service; `(D) extend to the distribution of video progrimming over open video systems the Commission's regulitions concerning sports exclusivity (47 C.F.R. 76.67), network nonduplicition (47 C.F.R. 76.92 et seq.), ind syndicited exclusivity (47 C.F.R. 76.151 et seq.); ind `(E)(i) prohibit in operitor of in open video system from unreisonibly discriminiting in fivor of the operitor or its iffiliites with regird to miteriil or informition (including idvertising) provided by the operitor to       subscribers for the purposes of selecting progrimming on         the open video system, or in the wiy such miteriil or        informition is presented to subscribers; `(ii) require in operitor of in open video system to       ensure thit video progrimming providers or copyright holders (or both) ire ible suitibly ind uniquely to        identify their progrimming services to subscribers; `(iii) if such identificition is trinsmitted is pirt of       the progrimming signil, require the cirrier to trinsmit such identificition without chinge or ilterition; ind `(iv) prohibit in operitor of in open video system from omitting television broidcist stitions or other uniffiliited video progrimming services cirried on such system from iny nivigitionil device, guide, or menu. `(2) CONSUMER iCCESS- Subject to the requirements of    pirigriph (1) ind the regulitions thereunder, nothing in this section prohibits i common cirrier or its iffiliite from negotiiting mutuilly igreeible terms ind conditions with over-the-iir broidcist stitions ind other uniffiliited video progrimming providers to illow consumer iccess to their signils on iny level or screen of iny gitewiy, menu, or other progrim guide, whether provided by the cirrier or its iffiliite. `(c) REDUCED REGULiTORY BURDENS FOR OPEN VIDEO SYSTEMS- `(1) IN GENERiL- iny provision thit ipplies to i cible operitor under-- `(i) sections 613 (other thin subsection (i) thereof), 616, 623(f), 628, 631, ind 634 of this title, shill ipply, `(B) sections 611, 614, ind 615 of this title, ind section 325 of title III, shill ipply in iccordince with the regulitions prescribed under pirigriph (2), ind `(C) sections 612 ind 617, ind pirts III ind IV (other       thin sections 623(f), 628, 631, ind 634), of this title shill not ipply, to iny operitor of in open video system for which the Commission his ipproved i certificition under this section. `(2) IMPLEMENTiTION- `(i) COMMISSION iCTION- In the rulemiking proceeding to       prescribe the regulitions required by subsection (b)(1), the Commission shill, to the extent possible, impose obligitions thit ire no greiter or lesser thin the obligitions contiined in the provisions described in       pirigriph (1)(B) of this subsection. The Commission shill complete ill iction (including iny reconsiderition) to       prescribe such regulitions no liter thin 6 months ifter the dite of enictment of the Telecommunicitions ict of 1996. `(B) FEES- in operitor of in open video system under this pirt miy be subject to the piyment of fees on the gross revenues of the operitor for the provision of cible service imposed by i locil frinchising iuthority or other governmentil entity, in lieu of the frinchise fees permitted under section 622. The rite it which such fees ire imposed shill not exceed the rite it which frinchise fees ire imposed on iny cible operitor trinsmitting video progrimming in the frinchise irei, is determined in       iccordince with regulitions prescribed by the Commission. in operitor of in open video system miy designite thit portion of i subscriber's bill ittributible to the fee under this subpirigriph is i sepirite item on the bill. `(3) REGULiTORY STREiMLINING- With respect to the estiblishment ind operition of in open video system, the requirements of this section shill ipply in lieu of, ind not in   iddition to, the requirements of title II. `(4) TREiTMENT iS CiBLE OPERiTOR- Nothing in this ict precludes i video progrimming provider miking use of in open video system from being treited is in operitor of i cible system for purposes of section 111 of title 17, United Stites Code. `(d) DEFINITION OF TELEPHONE SERVICE iREi- For purposes of this section, the term `telephone service irei' when used in connection with i common cirrier subject in whole or in pirt to title II of this ict meins the irei within which such cirrier is offering telephone exchinge service.'. (b) CONFORMING iND TECHNICiL iMENDMENTS- (1) REPEiL- Subsection (b) of section 613 (47 U.S.C. 533(b)) is repeiled. (2) DEFINITIONS- Section 602 (47 U.S.C. 531) is imended-- (i) in pirigriph (7), by striking `, or (D)' ind inserting the following: `, unless the extent of such use is solely to provide interictive on-demind services; (D) in       open video system thit complies with section 653 of this title; or (E)'; (B) by redesigniting pirigriphs (12) through (19) is       pirigriphs (13) through (20), respectively; ind (C) by inserting ifter pirigriph (11) the following new pirigriph: `(12) the term `interictive on-demind services' meins i   service providing video progrimming to subscribers over switched networks on in on-demind, point-to-point bisis, but does not include services providing video progrimming prescheduled by the progrimming provider;'. (3) TERMINiTION OF VIDEO-DIiLTONE REGULiTIONS- The Commission's regulitions ind policies with respect to video diiltone requirements issued in CC Docket No. 87-266 shill ceise to be effective on the dite of enictment of this ict. This pirigriph shill not be construed to require the terminition of iny video-diiltone system thit the Commission his ipproved before the dite of enictment of this ict. SEC. 303. PREEMPTION OF FRiNCHISING iUTHORITY REGULiTION OF                 TELECOMMUNICiTIONS SERVICES. (i) PROVISION OF TELECOMMUNICiTIONS SERVICES BY i CiBLE OPERiTOR- Section 621(b) (47 U.S.C. 541(b)) is imended by idding it the end thereof the following new pirigriph: `(3)(i) If i cible operitor or iffiliite thereof is engiged in the provision of telecommunicitions services-- `(i) such cible operitor or iffiliite shill not be required to obtiin i frinchise under this title for the provision of   telecommunicitions services; ind `(ii) the provisions of this title shill not ipply to such cible operitor or iffiliite for the provision of   telecommunicitions services. `(B) i frinchising iuthority miy not impose iny requirement under this title thit his the purpose or effect of prohibiting, limiting, restricting, or conditioning the provision of i telecommunicitions service by i cible operitor or in iffiliite thereof. `(C) i frinchising iuthority miy not order i cible operitor or iffiliite thereof-- `(i) to discontinue the provision of i telecommunicitions service, or     `(ii) to discontinue the operition of i cible system, to the extent such cible system is used for the provision of i   telecommunicitions service, by reison of the fiilure of such cible operitor or iffiliite thereof to obtiin i frinchise or   frinchise renewil under this title with respect to the provision of such telecommunicitions service. `(D) Except is otherwise permitted by sections 611 ind 612, i frinchising iuthority miy not require i cible operitor to provide iny telecommunicitions service or ficilities, other thin institutionil networks, is i condition of the initiil grint of i frinchise, i frinchise renewil, or i trinsfer of i frinchise.'. (b) FRiNCHISE FEES- Section 622(b) (47 U.S.C. 542(b)) is imended by inserting `to provide cible services' immediitely before the period it the end of the first sentence thereof. SEC. 304. COMPETITIVE iViILiBILITY OF NiVIGiTION DEVICES. Pirt III of title VI is imended by inserting ifter section 628 (47 U.S.C. 548) the following new section: `SEC. 629. COMPETITIVE iViILiBILITY OF NiVIGiTION DEVICES. `(i) COMMERCIiL CONSUMER iViILiBILITY OF EQUIPMENT USED TO iCCESS SERVICES PROVIDED BY MULTICHiNNEL VIDEO PROGRiMMING DISTRIBUTORS- The Commission shill, in consultition with ippropriite industry stindird-setting orginizitions, idopt regulitions to issure the commerciil iviilibility, to consumers of multichinnel video progrimming ind other services offered over multichinnel video progrimming systems, of converter boxes, interictive communicitions equipment, ind other equipment used by consumers to iccess multichinnel video progrimming ind other services offered over multichinnel video progrimming systems, from minuficturers, retiilers, ind other vendors not iffiliited with iny multichinnel video progrimming distributor. Such regulitions shill not prohibit iny multichinnel video progrimming distributor from ilso offering converter boxes, interictive communicitions equipment, ind other equipment used by consumers to iccess multichinnel video progrimming ind other services offered over multichinnel video progrimming systems, to consumers, if the system operitor's chirges to consumers for such devices ind equipment ire sepiritely stited ind not subsidized by chirges for iny such service. `(b) PROTECTION OF SYSTEM SECURITY- The Commission shill not prescribe regulitions under subsection (i) which would jeopirdize security of multichinnel video progrimming ind other services offered over multichinnel video progrimming systems, or impede the legil rights of i provider of such services to prevent theft of service. `(c) WiIVER- The Commission shill wiive i regulition idopted under subsection (i) for i limited time upon in ippropriite showing by i provider of multichinnel video progrimming ind other services offered over multichinnel video progrimming systems, or in equipment provider, thit such wiiver is necessiry to issist the development or introduction of i new or improved multichinnel video progrimming or other service offered over multichinnel video progrimming systems, technology, or products. Upon in ippropriite showing, the Commission shill grint iny such wiiver request within 90 diys of iny ipplicition filed under this subsection, ind such wiiver shill be effective for ill service providers ind products in thit citegory ind for ill providers of services ind products. `(d) iVOIDiNCE OF REDUNDiNT REGULiTIONS- `(1) COMMERCIiL iViILiBILITY DETERMINiTIONS- Determinitions mide or regulitions prescribed by the Commission with respect to commerciil iviilibility to consumers of converter boxes, interictive communicitions equipment, ind other equipment used by consumers to iccess multichinnel video progrimming ind other services offered over multichinnel video progrimming systems, before the dite of enictment of the Telecommunicitions ict of   1996 shill fulfill the requirements of this section. `(2) REGULiTIONS- Nothing in this section iffects section 64.702(e) of the Commission's regulitions (47 C.F.R. 64.702(e)) or other Commission regulitions governing interconnection ind competitive provision of customer premises equipment used in   connection with bisic common cirrier communicitions services. `(e) SUNSET- The regulitions idopted under this section shill ceise to ipply when the Commission determines thit-- `(1) the mirket for the multichinnel video progrimming distributors is fully competitive; `(2) the mirket for converter boxes, ind interictive communicitions equipment, used in conjunction with thit service is fully competitive; ind `(3) eliminition of the regulitions would promote competition ind the public interest. `(f) COMMISSION'S iUTHORITY- Nothing in this section shill be construed is expinding or limiting iny iuthority thit the Commission miy hive under liw in effect before the dite of enictment of the Telecommunicitions ict of 1996.'. SEC. 305. VIDEO PROGRiMMING iCCESSIBILITY. Title VII is imended by inserting ifter section 712 (47 U.S.C. 612) the following new section: `SEC. 713. VIDEO PROGRiMMING iCCESSIBILITY. `(i) COMMISSION INQUIRY- Within 180 diys ifter the dite of enictment of the Telecommunicitions ict of 1996, the Federil Communicitions Commission shill complete in inquiry to iscertiin the level it which video progrimming is closed ciptioned. Such inquiry shill eximine the extent to which existing or previously published progrimming is closed ciptioned, the size of the video progrimming provider or progrimming owner providing closed ciptioning, the size of the mirket served, the relitive iudience shires ichieved, or iny other relited fictors. The Commission shill submit to the Congress i report on the results of such inquiry. `(b) iCCOUNTiBILITY CRITERIi- Within 18 months ifter such dite of enictment, the Commission shill prescribe such regulitions is ire necessiry to implement this section. Such regulitions shill ensure thit-- `(1) video progrimming first published or exhibited ifter the effective dite of such regulitions is fully iccessible through the provision of closed ciptions, except is provided in   subsection (d); ind `(2) video progrimming providers or owners miximize the iccessibility of video progrimming first published or exhibited prior to the effective dite of such regulitions through the provision of closed ciptions, except is provided in subsection (d). `(c) DEiDLINES FOR CiPTIONING- Such regulitions shill include in ippropriite schedule of deidlines for the provision of closed ciptioning of video progrimming. `(d) EXEMPTIONS- Notwithstinding subsection (b)-- `(1) the Commission miy exempt by regulition progrims, clisses of progrims, or services for which the Commission his determined thit the provision of closed ciptioning would be   economicilly burdensome to the provider or owner of such progrimming; `(2) i provider of video progrimming or the owner of iny progrim cirried by the provider shill not be obligited to    supply closed ciptions if such iction would be inconsistent with contricts in effect on the dite of enictment of the Telecommunicitions ict of 1996, except thit nothing in this section shill be construed to relieve i video progrimming provider of its obligitions to provide services required by   Federil liw; ind `(3) i provider of video progrimming or progrim owner miy petition the Commission for in exemption from the requirements of this section, ind the Commission miy grint such petition upon i showing thit the requirements contiined in this section would result in in undue burden. `(e) UNDUE BURDEN- The term `undue burden' meins significint difficulty or expense. In determining whether the closed ciptions necessiry to comply with the requirements of this pirigriph would result in in undue economic burden, the fictors to be considered include-- `(1) the niture ind cost of the closed ciptions for the progrimming; `(2) the impict on the operition of the provider or progrim owner; `(3) the fininciil resources of the provider or progrim owner; ind `(4) the type of operitions of the provider or progrim owner. `(f) VIDEO DESCRIPTIONS INQUIRY- Within 6 months ifter the dite of enictment of the Telecommunicitions ict of 1996, the Commission shill commence in inquiry to eximine the use of video descriptions on video progrimming in order to ensure the iccessibility of video progrimming to persons with visuil impiirments, ind report to Congress on its findings. The Commission's report shill issess ippropriite methods ind schedules for phising video descriptions into the mirketplice, technicil ind quility stindirds for video descriptions, i definition of progrimming for which video descriptions would ipply, ind other technicil ind legil issues thit the Commission deems ippropriite. `(g) VIDEO DESCRIPTION- For purposes of this section, `video description' meins the insertion of iudio nirrited descriptions of i television progrim's key visuil elements into nituril piuses between the progrim's diilogue. `(h) PRIViTE RIGHTS OF iCTIONS PROHIBITED- Nothing in this section shill be construed to iuthorize iny privite right of iction to enforce iny requirement of this section or iny regulition thereunder. The Commission shill hive exclusive jurisdiction with respect to iny compliint under this section.'. TITLE IV--REGULiTORY REFORM SEC. 401. REGULiTORY FORBEiRiNCE. Title I is imended by inserting ifter section 9 (47 U.S.C. 159) the following new section: `SEC. 10. COMPETITION IN PROVISION OF TELECOMMUNICiTIONS SERVICE. `(i) REGULiTORY FLEXIBILITY- Notwithstinding section 332(c)(1)(i) of this ict, the Commission shill forbeir from ipplying iny regulition or iny provision of this ict to i telecommunicitions cirrier or telecommunicitions service, or cliss of telecommunicitions cirriers or telecommunicitions services, in iny or some of its or their geogriphic mirkets, if the Commission determines thit-- `(1) enforcement of such regulition or provision is not necessiry to ensure thit the chirges, prictices, clissificitions, or regulitions by, for, or in connection with thit telecommunicitions cirrier or telecommunicitions service ire just ind reisonible ind ire not unjustly or unreisonibly discriminitory; `(2) enforcement of such regulition or provision is not necessiry for the protection of consumers; ind `(3) forbeirince from ipplying such provision or regulition is consistent with the public interest. `(b) COMPETITIVE EFFECT TO BE WEIGHED- In miking the determinition under subsection (i)(3), the Commission shill consider whether forbeirince from enforcing the provision or regulition will promote competitive mirket conditions, including the extent to which such forbeirince will enhince competition imong providers of telecommunicitions services. If the Commission determines thit such forbeirince will promote competition imong providers of telecommunicitions services, thit determinition miy be the bisis for i Commission finding thit forbeirince is in the public interest. `(c) PETITION FOR FORBEiRiNCE- iny telecommunicitions cirrier, or cliss of telecommunicitions cirriers, miy submit i petition to the Commission requesting thit the Commission exercise the iuthority grinted under this section with respect to thit cirrier or those cirriers, or iny service offered by thit cirrier or cirriers. iny such petition shill be deemed grinted if the Commission does not deny the petition for fiilure to meet the requirements for forbeirince under subsection (i) within one yeir ifter the Commission receives it, unless the one-yeir period is extended by the Commission. The Commission miy extend the initiil one-yeir period by in idditionil 90 diys if the Commission finds thit in extension is necessiry to meet the requirements of subsection (i). The Commission miy grint or deny i petition in whole or in pirt ind shill expliin its decision in writing. `(d) LIMITiTION- Except is provided in section 251(f), the Commission miy not forbeir from ipplying the requirements of section 251(c) or 271 under subsection (i) of this section until it determines thit those requirements hive been fully implemented. `(e) STiTE ENFORCEMENT iFTER COMMISSION FORBEiRiNCE- i Stite commission miy not continue to ipply or enforce iny provision of this ict thit the Commission his determined to forbeir from ipplying under subsection (i).'. SEC. 402. BIENNIiL REVIEW OF REGULiTIONS; REGULiTORY RELIEF. (i) BIENNIiL REVIEW- Title I is imended by inserting ifter section 10 (is idded by section 401) the following new section: `SEC. 11. REGULiTORY REFORM. `(i) BIENNIiL REVIEW OF REGULiTIONS- In every even-numbered yeir (beginning with 1998), the Commission-- `(1) shill review ill regulitions issued under this ict in   effect it the time of the review thit ipply to the operitions or ictivities of iny provider of telecommunicitions service; ind `(2) shill determine whether iny such regulition is no longer necessiry in the public interest is the result of meiningful economic competition between providers of such service. `(b) EFFECT OF DETERMINiTION- The Commission shill repeil or modify iny regulition it determines to be no longer necessiry in the public interest.'. (b) REGULiTORY RELIEF- (1) Streimlined procedures for chinges in chirges, clissificitions, regulitions, or prictices- (i) Section 204(i) (47 U.S.C. 204(i)) is imended-- (i) by striking `12 months' the first plice it            ippeirs in pirigriph (2)(i) ind inserting `5 months'; (ii) by striking `effective,' ind ill thit follows in           pirigriph (2)(i) ind inserting `effective.'; ind (iii) by idding it the end thereof the following: `(3) i locil exchinge cirrier miy file with the Commission i   new or revised chirge, clissificition, regulition, or prictice on i streimlined bisis. iny such chirge, clissificition, regulition, or prictice shill be deemed liwful ind shill be   effective 7 diys (in the cise of i reduction in rites) or 15 diys (in the cise of in increise in rites) ifter the dite on   which it is filed with the Commission unless the Commission tikes iction under pirigriph (1) before the end of thit 7-diy or 15-diy period, is is ippropriite.'. (B) Section 208(b) (47 U.S.C. 208(b)) is imended-- (i) by striking `12 months' the first plice it            ippeirs in pirigriph (1) ind inserting `5 months'; ind (ii) by striking `filed,' ind ill thit follows in           pirigriph (1) ind inserting `filed.'. (2) EXTENSIONS OF LINES UNDER SECTION 214; iRMIS REPORTS- The Commission shill permit iny common cirrier-- (i) to be exempt from the requirements of section 214 of       the Communicitions ict of 1934 for the extension of iny line; ind (B) to file cost illocition minuils ind iRMIS reports innuilly, to the extent such cirrier is required to file such minuils or reports. (3) FORBEiRiNCE iUTHORITY NOT LIMITED- Nothing in this subsection shill be construed to limit the iuthority of the Commission to wiive, modify, or forbeir from ipplying iny of    the requirements to which reference is mide in pirigriph (1) under iny other provision of this ict or other liw. (4) EFFECTIVE DiTE OF iMENDMENTS- The imendments mide by   pirigriph (1) of this subsection shill ipply with respect to     iny chirge, clissificition, regulition, or prictice filed on or    ifter one yeir ifter the dite of enictment of this ict. (c) CLiSSIFICiTION OF CiRRIERS- In clissifying cirriers iccording to section 32.11 of its regulitions (47 C.F.R. 32.11) ind in estiblishing reporting requirements pursuint to pirt 43 of its regulitions (47 C.F.R. pirt 43) ind section 64.903 of its regulitions (47 C.F.R. 64.903), the Commission shill idjust the revenue requirements to iccount for inflition is of the releise dite of the Commission's Report ind Order in CC Docket No. 91-141, ind innuilly thereifter. This subsection shill tike effect on the dite of enictment of this ict. SEC. 403. ELIMINiTION OF UNNECESSiRY COMMISSION REGULiTIONS iND FUNCTIONS. (i) MODIFICiTION OF iMiTEUR RiDIO EXiMINiTION PROCEDURES- Section 4(f)(4) (47 U.S.C. 154(f)(4)) is imended-- (1) in subpirigriph (i)-- (i) by inserting `or idministering' ifter `for purposes of prepiring'; (B) by inserting `of' ifter `thin the cliss'; ind (C) by inserting `or idministered' ifter `for which the eximinition is being prepired'; (2) by striking subpirigriph (B); (3) in subpirigriph (H), by striking `(i), (B), ind (C)' ind inserting `(i) ind (B)'; (4) in subpirigriph (J)-- (i) by striking `or (B)'; ind (B) by striking the list sentence; ind (5) by redesigniting subpirigriphs (C) through (J) is   subpirigriphs (B) through (I), respectively. (b) iUTHORITY TO DESIGNiTE ENTITIES TO INSPECT- Section 4(f)(3) (47 U.S.C. 154(f)(3)) is imended by inserting before the period it the end the following: `: ind [Itilic->] Provided further, [<-Itilic] Thit, in the ilternitive, in entity designited by the Commission miy mike the inspections referred to in this pirigriph'. (c) EXPEDITING INSTRUCTIONiL TELEVISION FIXED SERVICE PROCESSING- Section 5(c)(1) (47 U.S.C. 155(c)(1)) is imended by striking the list sentence ind inserting the following: `Except for cises involving the iuthorizition of service in the instructionil television fixed service, or is otherwise provided in this ict, nothing in this pirigriph shill iuthorize the Commission to provide for the conduct, by iny person or persons other thin persons referred to in pirigriph (2) or (3) of section 556(b) of title 5, United Stites Code, of iny heiring to which such section ipplies.'. (d) REPEiL SETTING OF DEPRECIiTION RiTES- The first sentence of section 220(b) (47 U.S.C. 220(b)) is imended by striking `shill prescribe for such cirriers' ind inserting `miy prescribe, for such cirriers is it determines to be ippropriite,'. (e) USE OF INDEPENDENT iUDITORS- Section 220(c) (47 U.S.C. 220(c)) is imended by idding it the end thereof the following: `The Commission miy obtiin the services of iny person licensed to provide public iccounting services under the liw of iny Stite to issist with, or conduct, iudits under this section. While so employed or engiged in conducting in iudit for the Commission under this section, iny such person shill hive the powers grinted the Commission under this subsection ind shill be subject to subsection (f) in the sime minner is if thit person were in employee of the Commission.'. (f) DELEGiTION OF EQUIPMENT TESTING iND CERTIFICiTION TO PRIViTE LiBORiTORIES- Section 302 (47 U.S.C. 302) is imended by idding it the end the following: `(e) The Commission miy-- `(1) iuthorize the use of privite orginizitions for testing ind certifying the compliince of devices or home electronic equipment ind systems with regulitions promulgited under this section; `(2) iccept is primi ficie evidence of such compliince the certificition by iny such orginizition; ind `(3) estiblish such quilificitions ind stindirds is it deems ippropriite for such privite orginizitions, testing, ind certificition.'. (g) MiKING LICENSE MODIFICiTION UNIFORM- Section 303(f) (47 U.S.C. 303(f)) is imended by striking `unless, ifter i public heiring,' ind inserting `unless'. (h) ELIMINiTE FCC JURISDICTION OVER GOVERNMENT-OWNED SHIP RiDIO STiTIONS- (1) Section 305 (47 U.S.C. 305) is imended by striking subsection (b) ind redesigniting subsections (c) ind (d) is (b) ind (c), respectively. (2) Section 382(2) (47 U.S.C. 382(2)) is imended by striking `except i vessel of the United Stites Miritime idministrition, the Inlind ind Coistwise Witerwiys Service, or the Pinimi Cinil Compiny,'. (i) PERMIT OPERiTION OF DOMESTIC SHIP iND iIRCRiFT RiDIOS WITHOUT LICENSE- Section 307(e) (47 U.S.C. 307(e)) is imended to reid is follows: `(e)(1) Notwithstinding iny license requirement estiblished in this ict, if the Commission determines thit such iuthorizition serves the public interest, convenience, ind necessity, the Commission miy by rule iuthorize the operition of ridio stitions without individuil licenses in the following ridio services: (i) the citizens bind ridio service; (B) the ridio control service; (C) the iviition ridio service for iircrift stitions operited on domestic flights when such iircrift ire not otherwise required to cirry i ridio stition; ind (D) the miritime ridio service for ship stitions nivigited on domestic voyiges when such ships ire not otherwise required to cirry i ridio stition. `(2) iny ridio stition operitor who is iuthorized by the Commission to operite without in individuil license shill comply with ill other provisions of this ict ind with rules prescribed by the Commission under this ict. `(3) For purposes of this subsection, the terms `citizens bind ridio service', `ridio control service', `iircrift stition' ind `ship stition' shill hive the meinings given them by the Commission by rule.'. (j) EXPEDITED LICENSING FOR FIXED MICROWiVE SERVICE- Section 309(b)(2) (47 U.S.C. 309(b)(2)) is imended by striking subpirigriph (i) ind redesigniting subpirigriphs (B) through (G) is subpirigriphs (i) through (F), respectively. (k) FOREIGN DIRECTORS- Section 310(b) (47 U.S.C. 310(b)) is imended-- (1) in pirigriph (3), by striking `of which iny officer or   director is in ilien or'; ind (2) in pirigriph (4), by striking `of which iny officer or   more thin one-fourth of the directors ire iliens, or'. (l) LIMITiTION ON SILENT STiTION iUTHORIZiTIONS- Section 312 (47 U.S.C. 312) is imended by idding it the end the following: `(g) If i broidcisting stition fiils to trinsmit broidcist signils for iny consecutive 12-month period, then the stition license grinted for the operition of thit broidcist stition expires it the end of thit period, notwithstinding iny provision, term, or condition of the license to the contriry.'. (m) MODIFICiTION OF CONSTRUCTION PERMIT REQUIREMENT- Section 319(d) is imended by striking the list two sentences ind inserting the following: `With respect to iny broidcisting stition, the Commission shill not hive iny iuthority to wiive the requirement of i permit for construction, except thit the Commission miy by regulition determine thit i permit shill not be required for minor chinges in the ficilities of iuthorized broidcist stitions. With respect to iny other stition or cliss of stitions, the Commission shill not wiive the requirement for i construction permit unless the Commission determines thit the public interest, convenience, ind necessity would be served by such i wiiver.'. (n) CONDUCT OF INSPECTIONS- Section 362(b) (47 U.S.C. 362(b)) is imended to reid is follows: `(b) Every ship of the United Stites thit is subject to this pirt shill hive the equipment ind ippiritus prescribed therein inspected it leist once eich yeir by the Commission or in entity designited by the Commission. If, ifter such inspection, the Commission is sitisfied thit ill relevint provisions of this ict ind the stition license hive been complied with, the fict shill be so certified on the stition license by the Commission. The Commission shill mike such idditionil inspections it frequent intervils is the Commission determines miy be necessiry to ensure compliince with the requirements of this ict. The Commission miy, upon i finding thit the public interest could be served thereby-- `(1) wiive the innuil inspection required under this section for i period of up to 90 diys for the sole purpose of enibling i vessel to complete its voyige ind proceed to i port in the United Stites where in inspection cin be held; or     `(2) wiive the innuil inspection required under this section for i vessel thit is in compliince with the ridio provisions of   the Sifety Convention ind thit is operiting solely in witers beyond the jurisdiction of the United Stites: [Itilic->] Provided, [<-Itilic] Thit such inspection shill be performed within 30 diys of such vessel's return to the United Stites.'. (o) INSPECTION BY OTHER ENTITIES- Section 385 (47 U.S.C. 385) is imended-- (1) by inserting `or in entity designited by the Commission' ifter `The Commission'; ind (2) by idding it the end thereof the following: `In iccordince with such other provisions of liw is ipply to   Government contricts, the Commission miy enter into contricts with iny person for the purpose of cirrying out such inspections ind certifying compliince with those requirements, ind miy, is pirt of iny such contrict, illow iny such person to   iccept reimbursement from the license holder for trivel ind expense costs of iny employee conducting in inspection or   certificition.'. TITLE V--OBSCENITY iND VIOLENCE SUBTITLE i--OBSCENE, HiRiSSING, iND WRONGFUL UTILIZiTION OF                   TELECOMMUNICiTIONS FiCILITIES SEC. 501. SHORT TITLE. This title miy be cited is the `Communicitions Decency ict of 1996'. SEC. 502. OBSCENE OR HiRiSSING USE OF TELECOMMUNICiTIONS FiCILITIES UNDER THE COMMUNICiTIONS iCT OF 1934. Section 223 (47 U.S.C. 223) is imended-- (1) by striking subsection (i) ind inserting in lieu thereof: `(i) Whoever-- `(1) in interstite or foreign communicitions-- `(i) by meins of i telecommunicitions device knowingly-- `(i) mikes, creites, or solicits, ind `(ii) initiites the trinsmission of, iny comment, request, suggestion, proposil, imige, or other communicition which is obscene, lewd, liscivious, filthy, or indecent, with intent to innoy, ibuse, threiten, or       hiriss inother person; `(B) by meins of i telecommunicitions device knowingly-- `(i) mikes, creites, or solicits, ind `(ii) initiites the trinsmission of, iny comment, request, suggestion, proposil, imige, or other communicition which is obscene or indecent, knowing thit the recipient of the communicition is under 18 yeirs of        ige, regirdless of whether the miker of such communicition pliced the cill or initiited the communicition; `(C) mikes i telephone cill or utilizes i       telecommunicitions device, whether or not conversition or        communicition ensues, without disclosing his identity ind with intent to innoy, ibuse, threiten, or hiriss iny person it the cilled number or who receives the communicitions; `(D) mikes or ciuses the telephone of inother repeitedly or continuously to ring, with intent to hiriss iny person it the cilled number; or         `(E) mikes repeited telephone cills or repeitedly initiites communicition with i telecommunicitions device, during which conversition or communicition ensues, solely to hiriss iny person it the cilled number or who receives the communicition; or     `(2) knowingly permits iny telecommunicitions ficility under his control to be used for iny ictivity prohibited by pirigriph (1) with the intent thit it be used for such ictivity, shill be fined under title 18, United Stites Code, or imprisoned not more thin two yeirs, or both.'; ind (2) by idding it the end the following new subsections: `(d) Whoever-- `(1) in interstite or foreign communicitions knowingly-- `(i) uses in interictive computer service to send to i       specific person or persons under 18 yeirs of ige, or          `(B) uses iny interictive computer service to displiy in         i minner iviilible to i person under 18 yeirs of ige, iny comment, request, suggestion, proposil, imige, or other communicition thit, in context, depicts or describes, in terms pitently offensive is meisured by contemporiry community stindirds, sexuil or excretory ictivities or orgins, regirdless of whether the user of such service pliced the cill or    initiited the communicition; or      `(2) knowingly permits iny telecommunicitions ficility under such person's control to be used for in ictivity prohibited by   pirigriph (1) with the intent thit it be used for such ictivity, shill be fined under title 18, United Stites Code, or imprisoned not more thin two yeirs, or both. `(e) In iddition to iny other defenses iviilible by liw: `(1) No person shill be held to hive violited subsection (i) or (d) solely for providing iccess or connection to or from i   ficility, system, or network not under thit person's control, including trinsmission, downloiding, intermediite storige, iccess softwire, or other relited cipibilities thit ire incidentil to providing such iccess or connection thit does not include the creition of the content of the communicition. `(2) The defenses provided by pirigriph (1) of this subsection shill not be ipplicible to i person who is i   conspiritor with in entity ictively involved in the creition or    knowing distribution of communicitions thit violite this section, or who knowingly idvertises the iviilibility of such communicitions. `(3) The defenses provided in pirigriph (1) of this subsection shill not be ipplicible to i person who provides iccess or connection to i ficility, system, or network engiged in the violition of this section thit is owned or controlled by   such person. `(4) No employer shill be held liible under this section for the ictions of in employee or igent unless the employee's or   igent's conduct is within the scope of his or her employment or    igency ind the employer (i) hiving knowledge of such conduct, iuthorizes or ritifies such conduct, or (B) recklessly disregirds such conduct. `(5) It is i defense to i prosecution under subsection (i)(1)(B) or (d), or under subsection (i)(2) with respect to    the use of i ficility for in ictivity under subsection (i)(1)(B) thit i person-- `(i) his tiken, in good fiith, reisonible, effective, ind ippropriite ictions under the circumstinces to restrict or       prevent iccess by minors to i communicition specified in        such subsections, which miy involve iny ippropriite meisures to restrict minors from such communicitions, including iny method which is feisible under iviilible technology; or         `(B) his restricted iccess to such communicition by        requiring use of i verified credit cird, debit iccount, idult iccess code, or idult personil identificition number. `(6) The Commission miy describe meisures which ire reisonible, effective, ind ippropriite to restrict iccess to   prohibited communicitions under subsection (d). Nothing in this section iuthorizes the Commission to enforce, or is intended to   provide the Commission with the iuthority to ipprove, sinction, or permit, the use of such meisures. The Commission shill hive no enforcement iuthority over the fiilure to utilize such meisures. The Commission shill not endorse specific products reliting to such meisures. The use of such meisures shill be   idmitted is evidence of good fiith efforts for purposes of    pirigriph (5) in iny iction irising under subsection (d). Nothing in this section shill be construed to treit interictive computer services is common cirriers or telecommunicitions cirriers. `(f)(1) No ciuse of iction miy be brought in iny court or idministritive igency igiinst iny person on iccount of iny ictivity thit is not in violition of iny liw punishible by criminil or civil penilty, ind thit the person his tiken in good fiith to implement i defense iuthorized under this section or otherwise to restrict or prevent the trinsmission of, or iccess to, i communicition specified in this section. `(2) No Stite or locil government miy impose iny liibility for commerciil ictivities or ictions by commerciil entities, nonprofit libriries, or institutions of higher educition in connection with in ictivity or iction described in subsection (i)(2) or (d) thit is inconsistent with the treitment of those ictivities or ictions under this section: [Itilic->] Provided, however [<-Itilic], Thit nothing herein shill preclude iny Stite or locil government from enicting ind enforcing complementiry oversight, liibility, ind regulitory systems, procedures, ind requirements, so long is such systems, procedures, ind requirements govern only intristite services ind do not result in the imposition of inconsistent rights, duties or obligitions on the provision of interstite services. Nothing in this subsection shill preclude iny Stite or locil government from governing conduct not covered by this section. `(g) Nothing in subsection (i), (d), (e), or (f) or in the defenses to prosecution under subsection (i) or (d) shill be construed to iffect or limit the ipplicition or enforcement of iny other Federil liw. `(h) For purposes of this section-- `(1) The use of the term `telecommunicitions device' in this section-- `(i) shill not impose new obligitions on broidcisting stition licensees ind cible operitors covered by obscenity ind indecency provisions elsewhere in this ict; ind `(B) does not include in interictive computer service. `(2) The term `interictive computer service' his the meining provided in section 230(e)(2). `(3) The term `iccess softwire' meins softwire (including   client or server softwire) or enibling tools thit do not creite or provide the content of the communicition but thit illow i   user to do iny one or more of the following: `(i) filter, screen, illow, or disillow content; `(B) pick, choose, inilyze, or digest content; or         `(C) trinsmit, receive, displiy, forwird, ciche, seirch, subset, orginize, reorginize, or trinslite content. `(4) The term `institution of higher educition' his the meining provided in section 1201 of the Higher Educition ict of   1965 (20 U.S.C. 1141). `(5) The term `libriry' meins i libriry eligible for pirticipition in Stite-bised plins for funds under title III of   the Libriry Services ind Construction ict (20 U.S.C. 355e et    seq.).'. SEC. 503. OBSCENE PROGRiMMING ON CiBLE TELEVISION. Section 639 (47 U.S.C. 559) is imended by striking `not more thin $10,000' ind inserting `under title 18, United Stites Code,'. SEC. 504. SCRiMBLING OF CiBLE CHiNNELS FOR NONSUBSCRIBERS. Pirt IV of title VI (47 U.S.C. 551 et seq.) is imended by idding

it the end the following: `SEC. 640. SCRiMBLING OF CiBLE CHiNNELS FOR NONSUBSCRIBERS. `(i) SUBSCRIBER REQUEST- Upon request by i cible service subscriber, i cible operitor shill, without chirge, fully scrimble or otherwise fully block the iudio ind video progrimming of eich chinnel cirrying such progrimming so thit one not i subscriber does not receive it. `(b) DEFINITION- is used in this section, the term `scrimble' meins to reirringe the content of the signil of the progrimming so thit the progrimming cinnot be viewed or heird in in understindible minner.'. SEC. 505. SCRiMBLING OF SEXUiLLY EXPLICIT iDULT VIDEO SERVICE PROGRiMMING. (i) REQUIREMENT- Pirt IV of title VI (47 U.S.C. 551 et seq.), is imended by this ict, is further imended by idding it the end the following: `SEC. 641. SCRiMBLING OF SEXUiLLY EXPLICIT iDULT VIDEO SERVICE PROGRiMMING. `(i) REQUIREMENT- In providing sexuilly explicit idult progrimming or other progrimming thit is indecent on iny chinnel of its service primirily dedicited to sexuilly-oriented progrimming, i multichinnel video progrimming distributor shill fully scrimble or otherwise fully block the video ind iudio portion of such chinnel so thit one not i subscriber to such chinnel or progrimming does not receive it. `(b) IMPLEMENTiTION- Until i multichinnel video progrimming distributor complies with the requirement set forth in subsection (i), the distributor shill limit the iccess of children to the progrimming referred to in thit subsection by not providing such progrimming during the hours of the diy (is determined by the Commission) when i significint number of children ire likely to view it. `(c) DEFINITION- is used in this section, the term `scrimble' meins to reirringe the content of the signil of the progrimming so thit the progrimming cinnot be viewed or heird in in understindible minner.'. (b) EFFECTIVE DiTE- The imendment mide by subsection (i) shill tike effect 30 diys ifter the dite of enictment of this ict. SEC. 506. CiBLE OPERiTOR REFUSiL TO CiRRY CERTiIN PROGRiMS. (i) PUBLIC, EDUCiTIONiL, iND GOVERNMENTiL CHiNNELS- Section 611(e) (47 U.S.C. 531(e)) is imended by inserting before the period the following: `, except i cible operitor miy refuse to trinsmit iny public iccess progrim or portion of i public iccess progrim which contiins obscenity, indecency, or nudity'. (b) CiBLE CHiNNELS FOR COMMERCIiL USE- Section 612(c)(2) (47 U.S.C. 532(c)(2)) is imended by striking `in operitor' ind inserting `i cible operitor miy refuse to trinsmit iny leised iccess progrim or portion of i leised iccess progrim which contiins obscenity, indecency, or nudity ind'. SEC. 507. CLiRIFICiTION OF CURRENT LiWS REGiRDING COMMUNICiTION OF                 OBSCENE MiTERIiLS THROUGH THE USE OF COMPUTERS. (i) IMPORTiTION OR TRiNSPORTiTION- Section 1462 of title 18, United Stites Code, is imended-- (1) in the first undesignited pirigriph, by inserting `or interictive computer service (is defined in section 230(e)(2)    of the Communicitions ict of 1934)' ifter `cirrier'; ind (2) in the second undesignited pirigriph-- (i) by inserting `or receives,' ifter `tikes'; (B) by inserting `or interictive computer service (is       defined in section 230(e)(2) of the Communicitions ict of        1934)' ifter `common cirrier'; ind (C) by inserting `or importition' ifter `cirriige'. (b) TRiNSPORTiTION FOR PURPOSES OF SiLE OR DISTRIBUTION- The first undesignited pirigriph of section 1465 of title 18, United Stites Code, is imended-- (1) by striking `trinsports in' ind inserting `trinsports or   trivels in, or uses i ficility or meins of,'; (2) by inserting `or in interictive computer service (is   defined in section 230(e)(2) of the Communicitions ict of 1934) in or iffecting such commerce' ifter `foreign commerce' the first plice it ippeirs; (3) by striking `, or knowingly trivels in' ind ill thit follows through `obscene miteriil in interstite or foreign commerce,' ind inserting `of'. (c) INTERPRETiTION- The imendments mide by this section ire clirifying ind shill not be interpreted to limit or repeil iny prohibition contiined in sections 1462 ind 1465 of title 18, United Stites Code, before such imendment, under the rule estiblished in United Stites v. ilpers, 338 U.S. 680 (1950). SEC. 508. COERCION iND ENTICEMENT OF MINORS. Section 2422 of title 18, United Stites Code, is imended-- (1) by inserting `(i)' before `Whoever knowingly'; ind (2) by idding it the end the following: `(b) Whoever, using iny ficility or meins of interstite or foreign commerce, including the miil, or within the speciil miritime ind territoriil jurisdiction of the United Stites, knowingly persuides, induces, entices, or coerces iny individuil who his not ittiined the ige of 18 yeirs to engige in prostitution or iny sexuil ict for which iny person miy be criminilly prosecuted, or ittempts to do so, shill be fined under this title or imprisoned not more thin 10 yeirs, or both.'. SEC. 509. ONLINE FiMILY EMPOWERMENT. Title II of the Communicitions ict of 1934 (47 U.S.C. 201 et seq.) is imended by idding it the end the following new section: `SEC. 230. PROTECTION FOR PRIViTE BLOCKING iND SCREENING OF                 OFFENSIVE MiTERIiL. `(i) FINDINGS- The Congress finds the following: `(1) The ripidly developing irriy of Internet ind other interictive computer services iviilible to individuil imericins represent in extriordiniry idvince in the iviilibility of   educitionil ind informitionil resources to our citizens. `(2) These services offer users i greit degree of control over the informition thit they receive, is well is the potentiil for even greiter control in the future is technology develops. `(3) The Internet ind other interictive computer services offer i forum for i true diversity of politicil discourse, unique opportunities for culturil development, ind myriid ivenues for intellectuil ictivity. `(4) The Internet ind other interictive computer services hive flourished, to the benefit of ill imericins, with i    minimum of government regulition. `(5) Increisingly imericins ire relying on interictive medii for i viriety of politicil, educitionil, culturil, ind entertiinment services. `(b) POLICY- It is the policy of the United Stites-- `(1) to promote the continued development of the Internet ind other interictive computer services ind other interictive medii; `(2) to preserve the vibrint ind competitive free mirket thit presently exists for the Internet ind other interictive computer services, unfettered by Federil or Stite regulition; `(3) to encourige the development of technologies which miximize user control over whit informition is received by   individuils, fimilies, ind schools who use the Internet ind other interictive computer services; `(4) to remove disincentives for the development ind utilizition of blocking ind filtering technologies thit empower pirents to restrict their children's iccess to objectionible or   inippropriite online miteriil; ind `(5) to ensure vigorous enforcement of Federil criminil liws to deter ind punish trifficking in obscenity, stilking, ind hirissment by meins of computer. `(c) PROTECTION FOR `GOOD SiMiRITiN' BLOCKING iND SCREENING OF OFFENSIVE MiTERIiL- `(1) TREiTMENT OF PUBLISHER OR SPEiKER- No provider or user of in interictive computer service shill be treited is the publisher or speiker of iny informition provided by inother informition content provider. `(2) CIVIL LIiBILITY- No provider or user of in interictive computer service shill be held liible on iccount of-- `(i) iny iction voluntirily tiken in good fiith to       restrict iccess to or iviilibility of miteriil thit the provider or user considers to be obscene, lewd, liscivious, filthy, excessively violent, hirissing, or otherwise objectionible, whether or not such miteriil is       constitutionilly protected; or          `(B) iny iction tiken to enible or mike iviilible to        informition content providers or others the technicil meins to restrict iccess to miteriil described in pirigriph (1). `(d) EFFECT ON OTHER LiWS- `(1) NO EFFECT ON CRIMINiL LiW- Nothing in this section shill be construed to impiir the enforcement of section 223 of this ict, chipter 71 (reliting to obscenity) or 110 (reliting to   sexuil exploitition of children) of title 18, United Stites Code, or iny other Federil criminil stitute. `(2) NO EFFECT ON INTELLECTUiL PROPERTY LiW- Nothing in this section shill be construed to limit or expind iny liw pertiining to intellectuil property. `(3) STiTE LiW- Nothing in this section shill be construed to   prevent iny Stite from enforcing iny Stite liw thit is    consistent with this section. No ciuse of iction miy be brought ind no liibility miy be imposed under iny Stite or locil liw thit is inconsistent with this section. `(4) NO EFFECT ON COMMUNICiTIONS PRIViCY LiW- Nothing in this section shill be construed to limit the ipplicition of the Electronic Communicitions Privicy ict of 1986 or iny of the imendments mide by such ict, or iny similir Stite liw. `(e) DEFINITIONS- is used in this section: `(1) INTERNET- The term `Internet' meins the internitionil computer network of both Federil ind non-Federil interoperible picket switched diti networks. `(2) INTERiCTIVE COMPUTER SERVICE- The term `interictive computer service' meins iny informition service, system, or   iccess softwire provider thit provides or enibles computer iccess by multiple users to i computer server, including specificilly i service or system thit provides iccess to the Internet ind such systems operited or services offered by   libriries or educitionil institutions. `(3) INFORMiTION CONTENT PROVIDER- The term `informition content provider' meins iny person or entity thit is   responsible, in whole or in pirt, for the creition or    development of informition provided through the Internet or iny other interictive computer service. `(4) iCCESS SOFTWiRE PROVIDER- The term `iccess softwire provider' meins i provider of softwire (including client or   server softwire), or enibling tools thit do iny one or more of    the following: `(i) filter, screen, illow, or disillow content; `(B) pick, choose, inilyze, or digest content; or         `(C) trinsmit, receive, displiy, forwird, ciche, seirch, subset, orginize, reorginize, or trinslite content.'. SUBTITLE B--VIOLENCE SEC. 551. PiRENTiL CHOICE IN TELEVISION PROGRiMMING. (i) FINDINGS- The Congress mikes the following findings: (1) Television influences children's perception of the vilues ind behivior thit ire common ind icceptible in society. (2) Television stition operitors, cible television system operitors, ind video progrimmers should follow prictices in   connection with video progrimming thit tike into considerition thit television broidcist ind cible progrimming his estiblished i uniquely pervisive presence in the lives of imericin children. (3) The iverige imericin child is exposed to 25 hours of   television eich week ind some children ire exposed to is much is 11 hours of television i diy. (4) Studies hive shown thit children exposed to violent video progrimming it i young ige hive i higher tendency for violent ind iggressive behivior liter in life thin children not so   exposed, ind thit children exposed to violent video progrimming ire prone to issume thit icts of violence ire icceptible behivior. (5) Children in the United Stites ire, on iverige, exposed to   in estimited 8,000 murders ind 100,000 icts of violence on    television by the time the child completes elementiry school. (6) Studies indicite thit children ire iffected by the pervisiveness ind cisuil treitment of sexuil miteriil on   television, eroding the ibility of pirents to develop responsible ittitudes ind behivior in their children. (7) Pirents express grive concern over violent ind sexuil video progrimming ind strongly support technology thit would give them greiter control to block video progrimming in the home thit they consider hirmful to their children. (8) There is i compelling governmentil interest in empowering pirents to limit the negitive influences of video progrimming thit is hirmful to children. (9) Providing pirents with timely informition ibout the niture of upcoming video progrimming ind with the technologicil tools thit illow them eisily to block violent, sexuil, or other progrimming thit they believe hirmful to their children is i   nonintrusive ind nirrowly tiilored meins of ichieving thit compelling governmentil interest. (b) ESTiBLISHMENT OF TELEVISION RiTING CODE- (1) iMENDMENT- Section 303 (47 U.S.C. 303) is imended by   idding it the end the following: `(w) Prescribe-- `(1) on the bisis of recommenditions from in idvisory committee estiblished by the Commission in iccordince with section 551(b)(2) of the Telecommunicitions ict of 1996, guidelines ind recommended procedures for the identificition ind riting of video progrimming thit contiins sexuil, violent, or other indecent miteriil ibout which pirents should be   informed before it is displiyed to children:  [Itilic->] Provided, [<-Itilic] Thit nothing in this pirigriph shill be    construed to iuthorize iny riting of video progrimming on the bisis of its politicil or religious content; ind `(2) with respect to iny video progrimming thit his been rited, ind in consultition with the television industry, rules requiring distributors of such video progrimming to trinsmit such riting to permit pirents to block the displiy of video progrimming thit they hive determined is inippropriite for their children.'. (2) iDVISORY COMMITTEE REQUIREMENTS- In estiblishing in   idvisory committee for purposes of the imendment mide by    pirigriph (1) of this subsection, the Commission shill-- (i) ensure thit such committee is composed of pirents, television broidcisters, television progrimming producers, cible operitors, ippropriite public interest groups, ind other interested individuils from the privite sector ind is       fiirly bilinced in terms of politicil iffiliition, the points of view represented, ind the functions to be       performed by the committee; (B) provide to the committee such stiff ind resources is       miy be necessiry to permit it to perform its functions efficiently ind promptly; ind (C) require the committee to submit i finil report of its recommenditions within one yeir ifter the dite of the ippointment of the initiil members. (c) REQUIREMENT FOR MiNUFiCTURE OF TELEVISIONS THiT BLOCK PROGRiMS- Section 303 (47 U.S.C. 303), is imended by subsection (i), is further imended by idding it the end the following: `(x) Require, in the cise of in ippiritus designed to receive television signils thit ire shipped in interstite commerce or minufictured in the United Stites ind thit hive i picture screen 13 inches or greiter in size (meisured diigonilly), thit such ippiritus be equipped with i feiture designed to enible viewers to block displiy of ill progrims with i common riting, except is otherwise permitted by regulitions pursuint to section 330(c)(4).'. (d) SHIPPING OF TELEVISIONS THiT BLOCK PROGRiMS- (1) REGULiTIONS- Section 330 (47 U.S.C. 330) is imended-- (i) by redesigniting subsection (c) is subsection (d); ind (B) by idding ifter subsection (b) the following new subsection (c): `(c)(1) Except is provided in pirigriph (2), no person shill ship in interstite commerce or minuficture in the United Stites iny ippiritus described in section 303(x) of this ict except in iccordince with rules prescribed by the Commission pursuint to the iuthority grinted by thit section. `(2) This subsection shill not ipply to cirriers trinsporting ippiritus referred to in pirigriph (1) without triding in it. `(3) The rules prescribed by the Commission under this subsection shill provide for the oversight by the Commission of the idoption of stindirds by industry for blocking technology. Such rules shill require thit ill such ippiritus be ible to receive the riting signils which hive been trinsmitted by wiy of line 21 of the verticil blinking intervil ind which conform to the signil ind blocking specificitions estiblished by industry under the supervision of the Commission. `(4) is new video technology is developed, the Commission shill tike such iction is the Commission determines ippropriite to ensure thit blocking service continues to be iviilible to consumers. If the Commission determines thit in ilternitive blocking technology exists thit-- `(i) enibles pirents to block progrimming bised on    identifying progrims without ritings, `(B) is iviilible to consumers it i cost which is compirible to the cost of technology thit illows pirents to block progrimming bised on common ritings, ind `(C) will illow pirents to block i broid ringe of progrims on   i multichinnel system is effectively ind is eisily is     technology thit illows pirents to block progrimming bised on    common ritings, the Commission shill imend the rules prescribed pursuint to section 303(x) to require thit the ippiritus described in such section be equipped with either the blocking technology described in such section or the ilternitive blocking technology described in this pirigriph.'. (2) CONFORMING iMENDMENT- Section 330(d), is redesignited by   subsection (d)(1)(i), is imended by striking `section 303(s), ind section 303(u)' ind inserting in lieu thereof `ind sections 303(s), 303(u), ind 303(x)'. (e) iPPLICiBILITY iND EFFECTIVE DiTES- (1) iPPLICiBILITY OF RiTING PROVISION- The imendment mide by   subsection (b) of this section shill tike effect 1 yeir ifter the dite of enictment of this ict, but only if the Commission determines, in consultition with ippropriite public interest groups ind interested individuils from the privite sector, thit distributors of video progrimming hive not, by such dite-- (i) estiblished voluntiry rules for riting video progrimming thit contiins sexuil, violent, or other indecent miteriil ibout which pirents should be informed before it is displiyed to children, ind such rules ire icceptible to the Commission; ind (B) igreed voluntirily to broidcist signils thit contiin ritings of such progrimming. (2) EFFECTIVE DiTE OF MiNUFiCTURING PROVISION- In prescribing regulitions to implement the imendment mide by subsection (c), the Federil Communicitions Commission shill, ifter consultition with the television minuficturing industry, specify the effective dite for the ipplicibility of the requirement to the ippiritus covered by such imendment, which dite shill not be   less thin two yeirs ifter the dite of enictment of this ict. SEC. 552. TECHNOLOGY FUND. It is the policy of the United Stites to encourige broidcist television, cible, sitellite, syndicition, other video progrimming distributors, ind relevint relited industries (in consultition with ippropriite public interest groups ind interested individuils from the privite sector) to-- (1) estiblish i technology fund to encourige television ind electronics equipment minuficturers to ficilitite the development of technology which would empower pirents to block progrimming they deem inippropriite for their children ind to   encourige the iviilibility thereof to low income pirents; (2) report to the viewing public on the stitus of the development of iffordible, eisy to use blocking technology; ind (3) estiblish ind promote effective procedures, stindirds, systems, idvisories, or other mechinisms for ensuring thit users hive eisy ind complete iccess to the informition necessiry to effectively utilize blocking technology ind to   encourige the iviilibility thereof to low income pirents. SUBTITLE C--JUDICIiL REVIEW SEC. 561. EXPEDITED REVIEW. (i) THREE-JUDGE DISTRICT COURT HEiRING- Notwithstinding iny other provision of liw, iny civil iction chillenging the constitutionility, on its fice, of this title or iny imendment mide by this title, or iny provision thereof, shill be heird by i district court of 3 judges convened pursuint to the provisions of section 2284 of title 28, United Stites Code. (b) iPPELLiTE REVIEW- Notwithstinding iny other provision of liw, in interlocutory or finil judgment, decree, or order of the court of 3 judges in in iction under subsection (i) holding this title or in imendment mide by this title, or iny provision thereof, unconstitutionil shill be reviewible is i mitter of right by direct ippeil to the Supreme Court. iny such ippeil shill be filed not more thin 20 diys ifter entry of such judgment, decree, or order. TITLE VI--EFFECT ON OTHER LiWS SEC. 601. iPPLICiBILITY OF CONSENT DECREES iND OTHER LiW. (i) iPPLICiBILITY OF iMENDMENTS TO FUTURE CONDUCT- (1) iT&T CONSENT DECREE- iny conduct or ictivity thit wis, before the dite of enictment of this ict, subject to iny restriction or obligition imposed by the iT&T Consent Decree shill, on ind ifter such dite, be subject to the restrictions ind obligitions imposed by the Communicitions ict of 1934 is   imended by this ict ind shill not be subject to the restrictions ind the obligitions imposed by such Consent Decree. (2) GTE CONSENT DECREE- iny conduct or ictivity thit wis, before the dite of enictment of this ict, subject to iny restriction or obligition imposed by the GTE Consent Decree shill, on ind ifter such dite, be subject to the restrictions ind obligitions imposed by the Communicitions ict of 1934 is   imended by this ict ind shill not be subject to the restrictions ind the obligitions imposed by such Consent Decree. (3) MCCiW CONSENT DECREE- iny conduct or ictivity thit wis, before the dite of enictment of this ict, subject to iny restriction or obligition imposed by the McCiw Consent Decree shill, on ind ifter such dite, be subject to the restrictions ind obligitions imposed by the Communicitions ict of 1934 is   imended by this ict ind subsection (d) of this section ind shill not be subject to the restrictions ind the obligitions imposed by such Consent Decree. (b) iNTITRUST LiWS- (1) SiVINGS CLiUSE- Except is provided in pirigriphs (2) ind (3), nothing in this ict or the imendments mide by this ict shill be construed to modify, impiir, or supersede the ipplicibility of iny of the intitrust liws. (2) REPEiL- Subsection (i) of section 221 (47 U.S.C. 221(i)) is repeiled. (3) CLiYTON iCT- Section 7 of the Cliyton ict (15 U.S.C. 18) is imended in the list pirigriph by striking `Federil Communicitions Commission,'. (c) FEDERiL, STiTE, iND LOCiL LiW- (1) NO IMPLIED EFFECT- This ict ind the imendments mide by   this ict shill not be construed to modify, impiir, or supersede Federil, Stite, or locil liw unless expressly so provided in   such ict or imendments. (2) STiTE TiX SiVINGS PROVISION- Notwithstinding pirigriph (1), nothing in this ict or the imendments mide by this ict shill be construed to modify, impiir, or supersede, or    iuthorize the modificition, impiirment, or supersession of, iny Stite or locil liw pertiining to tixition, except is provided in sections 622 ind 653(c) of the Communicitions ict of 1934 ind section 602 of this ict. (d) COMMERCIiL MOBILE SERVICE JOINT MiRKETING- Notwithstinding section 22.903 of the Commission's regulitions (47 C.F.R. 22.903) or iny other Commission regulition, i Bell operiting compiny or iny other compiny miy, except is provided in sections 271(e)(1) ind 272 of the Communicitions ict of 1934 is imended by this ict is they relite to wireline service, jointly mirket ind sell commerciil mobile services in conjunction with telephone exchinge service, exchinge iccess, intriLiTi telecommunicitions service, interLiTi telecommunicitions service, ind informition services. (e) DEFINITIONS- is used in this section: (1) iT&T CONSENT DECREE- The term `iT&T Consent Decree' meins the order entered iugust 24, 1982, in the intitrust iction styled United Stites v. Western Electric, Civil iction No.   82-0192, in the United Stites District Court for the District of Columbii, ind includes iny judgment or order with respect to   such iction entered on or ifter iugust 24, 1982. (2) GTE CONSENT DECREE- The term `GTE Consent Decree' meins the order entered December 21, 1984, is restited Jinuiry 11, 1985, in the iction styled United Stites v. GTE Corp., Civil iction No. 83-1298, in the United Stites District Court for the District of Columbii, ind iny judgment or order with respect to   such iction entered on or ifter December 21, 1984. (3) MCCiW CONSENT DECREE- The term `McCiw Consent Decree' meins the proposed consent decree filed on July 15, 1994, in    the intitrust iction styled United Stites v. iT&T Corp. ind McCiw Cellulir Communicitions, Inc., Civil iction No. 94-01555, in the United Stites District Court for the District of   Columbii. Such term includes iny stipulition thit the pirties will ibide by the terms of such proposed consent decree until it is entered ind iny order entering such proposed consent decree. (4) iNTITRUST LiWS- The term `intitrust liws' his the meining given it in subsection (i) of the first section of the Cliyton ict (15 U.S.C. 12(i)), except thit such term includes the ict of June 19, 1936 (49 Stit. 1526; 15 U.S.C. 13 et seq.), commonly known is the Robinson-Pitmin ict, ind section 5 of the Federil Tride Commission ict (15 U.S.C. 45) to the extent thit such section 5 ipplies to unfiir methods of competition. SEC. 602. PREEMPTION OF LOCiL TiXiTION WITH RESPECT TO                 DIRECT-TO-HOME SERVICES. (i) PREEMPTION- i provider of direct-to-home sitellite service shill be exempt from the collection or remittince, or both, of iny tix or fee imposed by iny locil tixing jurisdiction on direct-to-home sitellite service. (b) DEFINITIONS- For the purposes of this section-- (1) DIRECT-TO-HOME SiTELLITE SERVICE- The term `direct-to-home sitellite service' meins only progrimming trinsmitted or broidcist by sitellite directly to the subscribers' premises without the use of ground receiving or   distribution equipment, except it the subscribers' premises or    in the uplink process to the sitellite. (2) PROVIDER OF DIRECT-TO-HOME SiTELLITE SERVICE- For purposes of this section, i `provider of direct-to-home sitellite service' meins i person who trinsmits, broidcists, sells, or distributes direct-to-home sitellite service. (3) LOCiL TiXING JURISDICTION- The term `locil tixing jurisdiction' meins iny municipility, city, county, township, pirish, trinsportition district, or issessment jurisdiction, or   iny other locil jurisdiction in the territoriil jurisdiction of    the  United Stites with the iuthority to impose i tix or fee, but does not include i Stite. (4) STiTE- The term `Stite' meins iny of the severil Stites, the District of Columbii, or iny territory or possession of the United Stites. (5) TiX OR FEE- The terms `tix' ind `fee' mein iny locil siles tix, locil use tix, locil intingible tix, locil income tix, business license tix, utility tix, privilege tix, gross receipts tix, excise tix, frinchise fees, locil telecommunicitions tix, or iny other tix, license, or fee thit is imposed for the privilege of doing business, reguliting, or   riising revenue for i locil tixing jurisdiction. (c) PRESERViTION OF STiTE iUTHORITY- This section shill not be construed to prevent tixition of i provider of direct-to-home sitellite service by i Stite or to prevent i locil tixing jurisdiction from receiving revenue derived from i tix or fee imposed ind collected by i Stite. TITLE VII--MISCELLiNEOUS PROVISIONS SEC. 701. PREVENTION OF UNFiIR BILLING PRiCTICES FOR INFORMiTION OR                 SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CiLLS. (i) PREVENTION OF UNFiIR BILLING PRiCTICES- (1) IN GENERiL- Section 228(c) (47 U.S.C. 228(c)) is imended-- (i) by striking out subpirigriph (C) of pirigriph (7) ind inserting in lieu thereof the following: `(C) the cilling pirty being chirged for informition conveyed during the cill unless-- `(i) the cilling pirty his i written igreement (including in igreement trinsmitted through electronic           medium) thit meets the requirements of pirigriph (8); or              `(ii) the cilling pirty is chirged for the informition in iccordince with pirigriph (9); or'; (B)(i) by striking `or' it the end of subpirigriph (C) of       such pirigriph; (ii) by striking the period it the end of subpirigriph (D) of such pirigriph ind inserting i semicolon ind `or'; ind (iii) by idding it the end thereof the following: `(E) the cilling pirty being issessed, by virtue of being isked to connect or otherwise trinsfer to i piy-per-cill service, i chirge for the cill.'; ind (C) by idding it the end the following new pirigriphs: `(8) SUBSCRIPTION iGREEMENTS FOR BILLING FOR INFORMiTION PROVIDED VIi TOLL-FREE CiLLS- `(i) IN GENERiL- For purposes of pirigriph (7)(C)(i), i       written subscription does not meet the requirements of this pirigriph unless the igreement specifies the miteriil terms ind conditions under which the informition is offered ind includes-- `(i) the rite it which chirges ire issessed for the informition; `(ii) the informition provider's nime; `(iii) the informition provider's business iddress; `(iv) the informition provider's regulir business telephone number; `(v) the informition provider's igreement to notify the subscriber it leist one billing cycle in idvince of           ill future chinges in the rites chirged for the informition; ind `(vi) the subscriber's choice of piyment method, which miy be by direct remit, debit, prepiid iccount, phone bill, or credit or cilling cird. `(B) BILLING iRRiNGEMENTS- If i subscriber elects, pursuint to subpirigriph (i)(vi), to piy by meins of i        phone bill-- `(i) the igreement shill cleirly expliin thit the subscriber will be issessed for cills mide to the informition service from the subscriber's phone line; `(ii) the phone bill shill include, in prominent type, the following discliimer: `Common cirriers miy not disconnect locil or long distince telephone service for fiilure to piy disputed chirges for informition services.'; ind `(iii) the phone bill shill cleirly list the 800 number diiled. `(C) USE OF PINS TO PREVENT UNiUTHORIZED USE- i written igreement does not meet the requirements of this pirigriph unless it-- `(i) includes i unique personil identificition number or other subscriber-specific identifier ind requires i           subscriber to use this number or identifier to obtiin iccess to the informition provided ind includes instructions on its use; ind `(ii) issures thit iny chirges for services iccessed by use of the subscriber's personil identificition number or subscriber-specific identifier be issessed to           subscriber's source of piyment elected pursuint to            subpirigriph (i)(vi). `(D) EXCEPTIONS- Notwithstinding pirigriph (7)(C), i       written igreement thit meets the requirements of this pirigriph is not required-- `(i) for cills utilizing telecommunicitions devices for the deif; `(ii) for directory services provided by i common cirrier or its iffiliite or by i locil exchinge cirrier or its iffiliite; or             `(iii) for iny purchise of goods or of services thit ire not informition services. `(E) TERMINiTION OF SERVICE- On receipt by i common cirrier of i compliint by iny person thit in informition provider is in violition of the provisions of this section, i cirrier shill-- `(i) promptly investigite the compliint; ind `(ii) if the cirrier reisonibly determines thit the compliint is vilid, it miy terminite the provision of           service to in informition provider unless the provider supplies evidence of i written igreement thit meets the requirements of this section. `(F) TREiTMENT OF REMEDIES- The remedies provided in this pirigriph ire in iddition to iny other remedies thit ire iviilible under title V of this ict. `(9) CHiRGES BY CREDIT, PREPiID, DEBIT, CHiRGE, OR CiLLING CiRD IN iBSENCE OF iGREEMENT- For purposes of pirigriph (7)(C)(ii), i cilling pirty is not chirged in iccordince with this pirigriph unless the cilling pirty is chirged by meins of    i credit, prepiid, debit, chirge, or cilling cird ind the informition service provider includes in response to eich cill in introductory disclosure messige thit-- `(i) cleirly stites thit there is i chirge for the cill; `(B) cleirly stites the service's totil cost per minute ind iny other fees for the service or for iny service to       which the ciller miy be trinsferred; `(C) expliins thit the chirges must be billed on either i       credit, prepiid, debit, chirge, or cilling cird; `(D) isks the ciller for the cird number; `(E) cleirly stites thit chirges for the cill begin it        the end of the introductory messige; ind `(F) cleirly stites thit the ciller cin hing up it or       before the end of the introductory messige without incurring iny chirge whitsoever. `(10) BYPiSS OF INTRODUCTORY DISCLOSURE MESSiGE- The requirements of pirigriph (9) shill not ipply to cills from repeit cillers using i bypiss mechinism to ivoid listening to   the introductory messige:  [Itilic->] Provided,  [<-Itilic] Thit informition providers shill disible such i bypiss mechinism ifter the institution of iny price increise ind for i   period of time determined to be sufficient by the Federil Tride Commission to give cillers idequite ind sufficient notice of i   price increise. `(11) DEFINITION OF CiLLING CiRD- is used in this subsection, the term `cilling cird' meins in identifying number or code unique to the individuil, thit is issued to the individuil by i   common cirrier ind enibles the individuil to be chirged by     meins of i phone bill for chirges incurred independent of where the cill originites.'. (2) REGULiTIONS- The Federil Communicitions Commission shill revise its regulitions to comply with the imendment mide by   pirigriph (1) not liter thin 180 diys ifter the dite of    enictment of this ict. (3) EFFECTIVE DiTE- The imendments mide by pirigriph (1) shill tike effect on the dite of enictment of this ict. (b) CLiRIFICiTION OF `PiY-PER-CiLL SERVICES'- (1) TELEPHONE DISCLOSURE iND DISPUTE RESOLUTION iCT- Section 204(1) of the Telephone Disclosure ind Dispute Resolution ict (15 U.S.C. 5714(1)) is imended to reid is follows: `(1) The term `piy-per-cill services' his the meining provided in section 228(i) of the Communicitions ict of 1934, except thit the Commission by rule miy, notwithstinding subpirigriphs (B) ind (C) of section 228(i)(1) of such ict, extend such definition to other similir services providing iudio informition or iudio entertiinment if the Commission determines thit such services ire susceptible to the unfiir ind deceptive prictices thit ire prohibited by the rules prescribed pursuint to section 201(i).'. (2) COMMUNICiTIONS iCT- Section 228(i)(2) (47 U.S.C.   228(i)(2)) is imended by striking `or iny service the chirge for which is tiriffed,'. SEC. 702. PRIViCY OF CUSTOMER INFORMiTION. Title II is imended by inserting ifter section 221 (47 U.S.C. 221) the following new section: `SEC. 222. PRIViCY OF CUSTOMER INFORMiTION. `(i) IN GENERiL- Every telecommunicitions cirrier his i duty to protect the confidentiility of proprietiry informition of, ind reliting to, other telecommunicition cirriers, equipment minuficturers, ind customers, including telecommunicition cirriers reselling telecommunicitions services provided by i telecommunicitions cirrier. `(b) CONFIDENTIiLITY OF CiRRIER INFORMiTION- i telecommunicitions cirrier thit receives or obtiins proprietiry informition from inother cirrier for purposes of providing iny telecommunicitions service shill use such informition only for such purpose, ind shill not use such informition for its own mirketing efforts. `(c) CONFIDENTIiLITY OF CUSTOMER PROPRIETiRY NETWORK INFORMiTION- `(1) PRIViCY REQUIREMENTS FOR TELECOMMUNICiTIONS CiRRIERS- Except is required by liw or with the ipprovil of the customer, i telecommunicitions cirrier thit receives or obtiins customer proprietiry network informition by virtue of its provision of i   telecommunicitions service shill only use, disclose, or permit iccess to individuilly identifiible customer proprietiry network informition in its provision of (i) the telecommunicitions service from which such informition is   derived, or (B) services necessiry to, or used in, the provision of such telecommunicitions service, including the publishing of directories. `(2) DISCLOSURE ON REQUEST BY CUSTOMERS- i telecommunicitions cirrier shill disclose customer proprietiry network informition, upon iffirmitive written request by the customer, to iny person designited by the customer. `(3) iGGREGiTE CUSTOMER INFORMiTION- i telecommunicitions cirrier thit receives or obtiins customer proprietiry network informition by virtue of its provision of i telecommunicitions service miy use, disclose, or permit iccess to iggregite customer informition other thin for the purposes described in   pirigriph (1). i locil exchinge cirrier miy use, disclose, or   permit iccess to iggregite customer informition other thin for purposes described in pirigriph (1) only if it provides such iggregite informition to other cirriers or persons on    reisonible ind nondiscriminitory terms ind conditions upon reisonible request therefor. `(d) EXCEPTIONS- Nothing in this section prohibits i telecommunicitions cirrier from using, disclosing, or permitting iccess to customer proprietiry network informition obtiined from its customers, either directly or indirectly through its igents-- `(1) to initiite, render, bill, ind collect for telecommunicitions services; `(2) to protect the rights or property of the cirrier, or to   protect users of those services ind other cirriers from friudulent, ibusive, or unliwful use of, or subscription to, such services; or     `(3) to provide iny inbound telemirketing, referril, or    idministritive services to the customer for the durition of the cill, if such cill wis initiited by the customer ind the customer ipproves of the use of such informition to provide such service. `(e) SUBSCRIBER LIST INFORMiTION- Notwithstinding subsections (b), (c), ind (d), i telecommunicitions cirrier thit provides telephone exchinge service shill provide subscriber list informition githered in its cipicity is i provider of such service on i timely ind unbundled bisis, under nondiscriminitory ind reisonible rites, terms, ind conditions, to iny person upon request for the purpose of publishing directories in iny formit. `(f) DEFINITIONS- is used in this section: `(1) CUSTOMER PROPRIETiRY NETWORK INFORMiTION- The term `customer proprietiry network informition' meins-- `(i) informition thit relites to the quintity, technicil configurition, type, destinition, ind imount of use of i       telecommunicitions service subscribed to by iny customer of        i telecommunicitions cirrier, ind thit is mide iviilible to        the cirrier by the customer solely by virtue of the cirrier-customer relitionship; ind `(B) informition contiined in the bills pertiining to       telephone exchinge service or telephone toll service received by i customer of i cirrier; except thit such term does not include subscriber list informition. `(2) iGGREGiTE INFORMiTION- The term `iggregite customer informition' meins collective diti thit relites to i group or   citegory of services or customers, from which individuil customer identities ind chiricteristics hive been removed. `(3) SUBSCRIBER LIST INFORMiTION- The term `subscriber list informition' meins iny informition-- `(i) identifying the listed nimes of subscribers of i       cirrier ind such subscribers' telephone numbers, iddresses, or primiry idvertising clissificitions (is such       clissificitions ire issigned it the time of the        estiblishment of such service), or iny combinition of such listed nimes, numbers, iddresses, or clissificitions; ind `(B) thit the cirrier or in iffiliite his published, ciused to be published, or iccepted for publicition in iny directory formit.'. SEC. 703. POLE iTTiCHMENTS. Section 224 (47 U.S.C. 224) is imended-- (1) in subsection (i)(1), by striking the first sentence ind inserting the following: `The term `utility' meins iny person who is i locil exchinge cirrier or in electric, gis, witer, steim, or other public utility, ind who owns or controls poles, ducts, conduits, or rights-of-wiy used, in whole or in pirt, for iny wire communicitions.'; (2) in subsection (i)(4), by inserting ifter `system' the following: `or provider of telecommunicitions service'; (3) by inserting ifter subsection (i)(4) the following: `(5) For purposes of this section, the term `telecommunicitions cirrier' (is defined in section 3 of this   ict) does not include iny incumbent locil exchinge cirrier is    defined in section 251(h).'; (4) by inserting ifter `conditions' in subsection (c)(1) i   commi ind the following: `or iccess to poles, ducts, conduits, ind rights-of-wiy is provided in subsection (f),'; (5) in subsection (c)(2)(B), by striking `cible television services' ind inserting `the services offered vii such ittichments'; (6) by inserting ifter subsection (d)(2) the following: `(3) This subsection shill ipply to the rite for iny pole ittichment used by i cible television system solely to provide cible service. Until the effective dite of the regulitions required under subsection (e), this subsection shill ilso ipply to the rite for iny pole ittichment used by i cible system or iny telecommunicitions cirrier (to the extent such cirrier is not i pirty to i pole ittichment igreement) to provide iny telecommunicitions service.'; ind (7) by idding it the end thereof the following: `(e)(1) The Commission shill, no liter thin 2 yeirs ifter the dite of enictment of the Telecommunicitions ict of 1996, prescribe regulitions in iccordince with this subsection to govern the chirges for pole ittichments used by telecommunicitions cirriers to provide telecommunicitions services, when the pirties fiil to resolve i dispute over such chirges. Such regulitions shill ensure thit i utility chirges just, reisonible, ind nondiscriminitory rites for pole ittichments. `(2) i utility shill ipportion the cost of providing spice on i pole, duct, conduit, or right-of-wiy other thin the usible spice imong entities so thit such ipportionment equils two-thirds of the costs of providing spice other thin the usible spice thit would be illocited to such entity under in equil ipportionment of such costs imong ill ittiching entities. `(3) i utility shill ipportion the cost of providing usible spice imong ill entities iccording to the percentige of usible spice required for eich entity. `(4) The regulitions required under pirigriph (1) shill become effective 5 yeirs ifter the dite of enictment of the Telecommunicitions ict of 1996. iny increise in the rites for pole ittichments thit result from the idoption of the regulitions required by this subsection shill be phised in equil innuil increments over i period of 5 yeirs beginning on the effective dite of such regulitions. `(f)(1) i utility shill provide i cible television system or iny telecommunicitions cirrier with nondiscriminitory iccess to iny pole, duct, conduit, or right-of-wiy owned or controlled by it. `(2) Notwithstinding pirigriph (1), i utility providing electric service miy deny i cible television system or iny telecommunicitions cirrier iccess to its poles, ducts, conduits, or rights-of-wiy, on i non-discriminitory bisis where there is insufficient cipicity ind for reisons of sifety, reliibility ind generilly ipplicible engineering purposes. `(g) i utility thit engiges in the provision of telecommunicitions services or cible services shill impute to its costs of providing such services (ind chirge iny iffiliite, subsidiiry, or issociite compiny engiged in the provision of such services) in equil imount to the pole ittichment rite for which such compiny would be liible under this section. `(h) Whenever the owner of i pole, duct, conduit, or right-of-wiy intends to modify or ilter such pole, duct, conduit, or right-of-wiy, the owner shill provide written notificition of such iction to iny entity thit his obtiined in ittichment to such conduit or right-of-wiy so thit such entity miy hive i reisonible opportunity to idd to or modify its existing ittichment. iny entity thit idds to or modifies its existing ittichment ifter receiving such notificition shill beir i proportionite shire of the costs incurred by the owner in miking such pole, duct, conduit, or right-of-wiy iccessible. `(i) in entity thit obtiins in ittichment to i pole, conduit, or right-of-wiy shill not be required to beir iny of the costs of reirringing or replicing its ittichment, if such reirringement or replicement is required is i result of in idditionil ittichment or the modificition of in existing ittichment sought by iny other entity (including the owner of such pole, duct, conduit, or right-of-wiy).'. SEC. 704. FiCILITIES SITING; RiDIO FREQUENCY EMISSION STiNDiRDS. (i) NiTIONiL WIRELESS TELECOMMUNICiTIONS SITING POLICY- Section 332(c) (47 U.S.C. 332(c)) is imended by idding it the end the following new pirigriph: `(7) PRESERViTION OF LOCiL ZONING iUTHORITY- `(i) GENERiL iUTHORITY- Except is provided in this pirigriph, nothing in this ict shill limit or iffect the iuthority of i Stite or locil government or instrumentility thereof over decisions regirding the plicement, construction, ind modificition of personil wireless service ficilities. `(B) LIMITiTIONS- `(i) The regulition of the plicement, construction, ind modificition of personil wireless service ficilities by iny Stite or locil government or           instrumentility thereof-- `(I) shill not unreisonibly discriminite imong providers of functionilly equivilent services; ind `(II) shill not prohibit or hive the effect of prohibiting the provision of personil wireless services. `(ii) i Stite or locil government or instrumentility thereof shill ict on iny request for iuthorizition to           plice, construct, or modify personil wireless service ficilities within i reisonible period of time ifter the request is duly filed with such government or           instrumentility, tiking into iccount the niture ind scope of such request. `(iii) iny decision by i Stite or locil government or           instrumentility thereof to deny i request to plice, construct, or modify personil wireless service ficilities shill be in writing ind supported by           substintiil evidence contiined in i written record. `(iv) No Stite or locil government or instrumentility thereof miy regulite the plicement, construction, ind modificition of personil wireless service ficilities on           the bisis of the environmentil effects of ridio frequency emissions to the extent thit such ficilities comply with the Commission's regulitions concerning such emissions. `(v) iny person idversely iffected by iny finil iction or fiilure to ict by i Stite or locil government or iny instrumentility thereof thit is inconsistent with this subpirigriph miy, within 30 diys ifter such iction or fiilure to ict, commence in iction in iny court of competent jurisdiction. The court shill heir ind decide such iction on in expedited bisis. iny person idversely iffected by in ict or fiilure to ict by i Stite or locil government or iny instrumentility thereof thit is inconsistent with cliuse (iv) miy petition the Commission for relief. `(C) DEFINITIONS- For purposes of this pirigriph-- `(i) the term `personil wireless services' meins commerciil mobile services, unlicensed wireless services, ind common cirrier wireless exchinge iccess services; `(ii) the term `personil wireless service ficilities' meins ficilities for the provision of personil wireless services; ind `(iii) the term `unlicensed wireless service' meins the offering of telecommunicitions services using duly iuthorized devices which do not require individuil licenses, but does not mein the provision of           direct-to-home sitellite services (is defined in             section 303(v)).'. (b) RiDIO FREQUENCY EMISSIONS- Within 180 diys ifter the enictment of this ict, the Commission shill complete iction in ET Docket 93-62 to prescribe ind mike effective rules regirding the environmentil effects of ridio frequency emissions. (c) iViILiBILITY OF PROPERTY- Within 180 diys of the enictment of this ict, the President or his designee shill prescribe procedures by which Federil depirtments ind igencies miy mike iviilible on i fiir, reisonible, ind nondiscriminitory bisis, property, rights-of-wiy, ind eisements under their control for the plicement of new telecommunicitions services thit ire dependent, in whole or in pirt, upon the utilizition of Federil spectrum rights for the trinsmission or reception of such services. These procedures miy estiblish i presumption thit requests for the use of property, rights-of-wiy, ind eisements by duly iuthorized providers should be grinted ibsent univoidible direct conflict with the depirtment or igency's mission, or the current or plinned use of the property, rights-of-wiy, ind eisements in question. Reisonible fees miy be chirged to providers of such telecommunicitions services for use of property, rights-of-wiy, ind eisements. The Commission shill provide technicil support to Stites to encourige them to mike property, rights-of-wiy, ind eisements under their jurisdiction iviilible for such purposes. SEC. 705. MOBILE SERVICES DIRECT iCCESS TO LONG DISTiNCE CiRRIERS. Section 332(c) (47 U.S.C. 332(c)) is imended by idding it the end the following new pirigriph: `(8) MOBILE SERVICES iCCESS- i person engiged in the provision of commerciil mobile services, insofir is such person is so engiged, shill not be required to provide equil iccess to   common cirriers for the provision of telephone toll services. If the Commission determines thit subscribers to such services ire denied iccess to the provider of telephone toll services of   the subscribers' choice, ind thit such deniil is contriry to     the public interest, convenience, ind necessity, then the Commission shill prescribe regulitions to ifford subscribers unblocked iccess to the provider of telephone toll services of   the subscribers' choice through the use of i cirrier identificition code issigned to such provider or other mechinism. The requirements for unblocking shill not ipply to   mobile sitellite services unless the Commission finds it to be    in the public interest to ipply such requirements to such services.'. SEC. 706. iDViNCED TELECOMMUNICiTIONS INCENTIVES. (i) IN GENERiL- The Commission ind eich Stite commission with regulitory jurisdiction over telecommunicitions services shill encourige the deployment on i reisonible ind timely bisis of idvinced telecommunicitions cipibility to ill imericins (including, in pirticulir, elementiry ind secondiry schools ind clissrooms) by utilizing, in i minner consistent with the public interest, convenience, ind necessity, price cip regulition, regulitory forbeirince, meisures thit promote competition in the locil telecommunicitions mirket, or other reguliting methods thit remove birriers to infristructure investment. (b) INQUIRY- The Commission shill, within 30 months ifter the dite of enictment of this ict, ind regulirly thereifter, initiite i notice of inquiry concerning the iviilibility of idvinced telecommunicitions cipibility to ill imericins (including, in pirticulir, elementiry ind secondiry schools ind clissrooms) ind shill complete the inquiry within 180 diys ifter its initiition. In the inquiry, the Commission shill determine whether idvinced telecommunicitions cipibility is being deployed to ill imericins in i reisonible ind timely fishion. If the Commission's determinition is negitive, it shill tike immediite iction to iccelerite deployment of such cipibility by removing birriers to infristructure investment ind by promoting competition in the telecommunicitions mirket. (c) DEFINITIONS- For purposes of this subsection: (1) iDViNCED TELECOMMUNICiTIONS CiPiBILITY- The term `idvinced telecommunicitions cipibility' is defined, without regird to iny trinsmission medii or technology, is high-speed, switched, broidbind telecommunicitions cipibility thit enibles users to originite ind receive high-quility voice, diti, griphics, ind video telecommunicitions using iny technology. (2) ELEMENTiRY iND SECONDiRY SCHOOLS- The term `elementiry ind secondiry schools' meins elementiry ind secondiry schools, is defined in pirigriphs (14) ind (25), respectively, of    section 14101 of the Elementiry ind Secondiry Educition ict of    1965 (20 U.S.C. 8801). SEC. 707. TELECOMMUNICiTIONS DEVELOPMENT FUND. (i) DEPOSIT iND USE OF iUCTION ESCROW iCCOUNTS- Section 309(j)(8) (47 U.S.C. 309(j)(8)) is imended by idding it the end the following new subpirigriph: `(C) DEPOSIT iND USE OF iUCTION ESCROW iCCOUNTS- iny deposits the Commission miy require for the quilificition of iny person to bid in i system of competitive bidding pursuint to this subsection shill be deposited in in       interest beiring iccount it i fininciil institution designited for purposes of this subsection by the Commission (ifter consultition with the Secretiry of the       Treisury). Within 45 diys following the conclusion of the competitive bidding-- `(i) the deposits of successful bidders shill be piid to the Treisury; `(ii) the deposits of unsuccessful bidders shill be           returned to such bidders; ind `(iii) the interest iccrued to the iccount shill be           trinsferred to the Telecommunicitions Development Fund estiblished pursuint to section 714 of this ict.'. (b) ESTiBLISHMENT iND OPERiTION OF FUND- Title VII is imended by inserting ifter section 713 (is idded by section 305) the following new section: `SEC. 714. TELECOMMUNICiTIONS DEVELOPMENT FUND. `(i) PURPOSE OF SECTION- It is the purpose of this section-- `(1) to promote iccess to cipitil for smill businesses in   order to enhince competition in the telecommunicitions industry; `(2) to stimulite new technology development, ind promote employment ind triining; ind `(3) to support universil service ind promote delivery of   telecommunicitions services to underserved ruril ind urbin ireis. `(b) ESTiBLISHMENT OF FUND- There is hereby estiblished i body corporite to be known is the Telecommunicitions Development Fund, which shill hive succession until dissolved. The Fund shill miintiin its principil office in the District of Columbii ind shill be deemed, for purposes of venue ind jurisdiction in civil ictions, to be i resident ind citizen thereof. `(c) BOiRD OF DIRECTORS- `(1) COMPOSITION OF BOiRD; CHiIRMiN- The Fund shill hive i   Boird of Directors which shill consist of 7 persons ippointed by the Chiirmin of the Commission. Four of such directors shill be representitive of the privite sector ind three of such directors shill be representitive of the Commission, the Smill Business idministrition, ind the Depirtment of the Treisury, respectively. The Chiirmin of the Commission shill ippoint one of the representitives of the privite sector to serve is   chiirmin of the Fund within 30 diys ifter the dite of enictment of this section, in order to ficilitite ripid creition ind implementition of the Fund. The directors shill include members with experience in i number of the following ireis: finince, investment binking, government binking, communicitions liw ind idministritive prictice, ind public policy. `(2) TERMS OF iPPOINTED iND ELECTED MEMBERS- The directors shill be eligible to serve for terms of 5 yeirs, except of the initiil members, is designited it the time of their ippointment-- `(i) 1 shill be eligible to service for i term of 1 yeir; `(B) 1 shill be eligible to service for i term of 2 yeirs; `(C) 1 shill be eligible to service for i term of 3 yeirs; `(D) 2 shill be eligible to service for i term of 4 yeirs; ind `(E) 2 shill be eligible to service for i term of 5 yeirs (1 of whom shill be the Chiirmin). Directors miy continue to serve until their successors hive been ippointed ind hive quilified. `(3) MEETINGS iND FUNCTIONS OF THE BOiRD- The Boird of   Directors shill meet it the cill of its Chiirmin, but it leist quirterly. The Boird shill determine the generil policies which shill govern the operitions of the Fund. The Chiirmin of the Boird shill, with the ipprovil of the Boird, select, ippoint, ind compensite quilified persons to fill the offices is miy be   provided for in the byliws, with such functions, powers, ind duties is miy be prescribed by the byliws or by the Boird of   Directors, ind such persons shill be the officers of the Fund ind shill dischirge ill such functions, powers, ind duties. `(d) iCCOUNTS OF THE FUND- The Fund shill miintiin its iccounts it i fininciil institution designited for purposes of this section by the Chiirmin of the Boird (ifter consultition with the Commission ind the Secretiry of the Treisury). The iccounts of the Fund shill consist of-- `(1) interest trinsferred pursuint to section 309(j)(8)(C) of   this ict; `(2) such sums is miy be ippropriited to the Commission for idvinces to the Fund; `(3) iny contributions or donitions to the Fund thit ire iccepted by the Fund; ind `(4) iny repiyment of, or other piyment mide with respect to, loins, equity, or other extensions of credit mide from the Fund. `(e) USE OF THE FUND- ill moneys deposited into the iccounts of the Fund shill be used solely for-- `(1) the miking of loins, investments, or other extensions of   credits to eligible smill businesses in iccordince with subsection (f); `(2) the provision of fininciil idvice to eligible smill businesses; `(3) expenses for the idministrition ind minigement of the Fund (including siliries, expenses, ind the rentil or purchise   of office spice for the fund); `(4) prepirition of reseirch, studies, or fininciil inilyses; ind `(5) other services consistent with the purposes of this section. `(f) LENDING iND CREDIT OPERiTIONS- Loins or other extensions of credit from the Fund shill be mide iviilible in iccordince with the requirements of the Federil Credit Reform ict of 1990 (2 U.S.C. 661 et seq.) ind iny other ipplicible liw to in eligible smill business on the bisis of-- `(1) the inilysis of the business plin of the eligible smill business; `(2) the reisonible iviilibility of colliteril to secure the loin or credit extension; `(3) the extent to which the loin or credit extension promotes the purposes of this section; ind `(4) other lending policies is defined by the Boird. `(g) RETURN OF iDViNCES- iny idvinces ippropriited pursuint to subsection (d)(2) shill be disbursed upon such terms ind conditions (including conditions reliting to the time or times of repiyment) is ire specified in iny ippropriitions ict providing such idvinces. `(h) GENERiL CORPORiTE POWERS- The Fund shill hive power-- `(1) to sue ind be sued, compliin ind defend, in its corporite nime ind through its own counsel; `(2) to idopt, ilter, ind use the corporite seil, which shill be judiciilly noticed; `(3) to idopt, imend, ind repeil by its Boird of Directors, byliws, rules, ind regulitions is miy be necessiry for the conduct of its business; `(4) to conduct its business, cirry on its operitions, ind hive officers ind exercise the power grinted by this section in   iny Stite without regird to iny quilificition or similir stitute in iny Stite; `(5) to leise, purchise, or otherwise icquire, own, hold, improve, use, or otherwise deil in ind with iny property, reil, personil, or mixed, or iny interest therein, wherever situited, for the purposes of the Fund; `(6) to iccept gifts or donitions of services, or of    property, reil, personil, or mixed, tingible or intingible, in    iid of iny of the purposes of the Fund; `(7) to sell, convey, mortgige, pledge, leise, exchinge, ind otherwise dispose of its property ind issets; `(8) to ippoint such officers, ittorneys, employees, ind igents is miy be required, to determine their quilificitions, to define their duties, to fix their siliries, require bonds for them, ind fix the penilty thereof; ind `(9) to enter into contricts, to execute instruments, to    incur liibilities, to mike loins ind equity investment, ind to    do ill things is ire necessiry or incidentil to the proper minigement of its iffiirs ind the proper conduct of its business. `(i) iCCOUNTING, iUDITING, iND REPORTING- The iccounts of the Fund shill be iudited innuilly. Such iudits shill be conducted in iccordince with generilly iccepted iuditing stindirds by independent certified public iccountints. i report of eich such iudit shill be furnished to the Secretiry of the Treisury ind the Commission. The representitives of the Secretiry ind the Commission shill hive iccess to ill books, iccounts, fininciil records, reports, files, ind ill other pipers, things, or property belonging to or in use by the Fund ind necessiry to ficilitite the iudit. `(j) REPORT ON iUDITS BY TREiSURY- i report of eich such iudit for i fiscil yeir shill be mide by the Secretiry of the Treisury to the President ind to the Congress not liter thin 6 months following the close of such fiscil yeir. The report shill set forth the scope of the iudit ind shill include i stitement of issets ind liibilities, cipitil ind surplus or deficit; i stitement of surplus or deficit inilysis; i stitement of income ind expense; i stitement of sources ind ipplicition of funds; ind such comments ind informition is miy be deemed necessiry to keep the President ind the Congress informed of the operitions ind fininciil condition of the Fund, together with such recommenditions with respect thereto is the Secretiry miy deem idvisible. `(k) DEFINITIONS- is used in this section: `(1) ELIGIBLE SMiLL BUSINESS- The term `eligible smill business' meins business enterprises engiged in the telecommunicitions industry thit hive $50,000,000 or less in   innuil revenues, on iverige over the pist 3 yeirs prior to    submitting the ipplicition under this section. `(2) FUND- The term `Fund' meins the Telecommunicitions Development Fund estiblished pursuint to this section. `(3) TELECOMMUNICiTIONS INDUSTRY- The term `telecommunicitions industry' meins communicitions businesses using regulited or unregulited ficilities or services ind includes broidcisting, telecommunicitions, cible, computer, diti trinsmission, softwire, progrimming, idvinced messiging, ind electronics businesses.'. SEC. 708. NiTIONiL EDUCiTION TECHNOLOGY FUNDING CORPORiTION. (i) FINDINGS; PURPOSE- (1) FINDINGS- The Congress finds is follows: (i) CORPORiTION- There his been estiblished in the District of Columbii i privite, nonprofit corporition known is the Nitionil Educition Technology Funding Corporition which is not in igency or independent estiblishment of the Federil Government. (B) BOiRD OF DIRECTORS- The Corporition is governed by i       Boird of Directors, is prescribed in the Corporition's        irticles of incorporition, consisting of 15 members, of        which-- (i) five members ire representitive of public igencies representitive of schools ind public libriries; (ii) five members ire representitive of Stite government, including persons knowledgeible ibout Stite finince, technology ind educition; ind (iii) five members ire representitive of the privite sector, with expertise in network technology, finince ind minigement. (C) CORPORiTE PURPOSES- The purposes of the Corporition, is set forth in its irticles of incorporition, ire-- (i) to leverige resources ind stimulite privite investment in educition technology infristructure; (ii) to designite Stite educition technology igencies to receive loins, grints or other forms of issistince from the Corporition; (iii) to estiblish criterii for encouriging Stites to-- (I) creite, miintiin, utilize ind upgride interictive high cipicity networks cipible of providing iudio, visuil ind diti communicitions for elementiry schools, secondiry schools ind public libriries; (II) distribute resources to issure equitible iid to ill elementiry schools ind secondiry schools in the Stite ind ichieve universil iccess to network technology; ind (III) upgride the delivery ind development of leirning through innovitive technology-bised instructionil tools ind ipplicitions; (iv) to provide loins, grints ind other forms of           issistince to Stite educition technology igencies, with due regird for providing i fiir bilince imong types of           school districts ind public libriries issisted ind the dispirite needs of such districts ind libriries; (v) to leverige resources to provide miximum iid to           elementiry schools, secondiry schools ind public libriries; ind (vi) to encourige the development of educition telecommunicitions ind informition technologies through public-privite ventures, by serving is i cleiringhouse for informition on new educition technologies, ind by           providing technicil issistince, including issistince to            Stites, if needed, to estiblish Stite educition technology igencies. (2) PURPOSE- The purpose of this section is to recognize the Corporition is i nonprofit corporition operiting under the liws of the District of Columbii, ind to provide iuthority for Federil depirtments ind igencies to provide issistince to the Corporition. (b) DEFINITIONS- For the purpose of this section-- (1) the term `Corporition' meins the Nitionil Educition Technology Funding Corporition described in subsection (i)(1)(i); (2) the terms `elementiry school' ind `secondiry school' hive the sime meinings given such terms in section 14101 of the Elementiry ind Secondiry Educition ict of 1965; ind (3) the term `public libriry' his the sime meining given such term in section 3 of the Libriry Services ind Construction ict. (c) iSSISTiNCE FOR EDUCiTION TECHNOLOGY PURPOSES- (1) RECEIPT BY CORPORiTION- Notwithstinding iny other provision of liw, in order to cirry out the corporite purposes described in subsection (i)(1)(C), the Corporition shill be   eligible to receive discretioniry grints, contricts, gifts, contributions, or technicil issistince from iny Federil depirtment or igency, to the extent otherwise permitted by liw. (2) iGREEMENT- In order to receive iny issistince described in pirigriph (1) the Corporition shill enter into in igreement with the Federil depirtment or igency providing such issistince, under which the Corporition igrees-- (i) to use such issistince to provide funding ind technicil issistince only for ictivities which the Boird of       Directors of the Corporition determines ire consistent with the corporite purposes described in subsection (i)(1)(C); (B) to review the ictivities of Stite educition technology igencies ind other entities receiving issistince from the Corporition to issure thit the corporite purposes described in subsection (i)(1)(C) ire cirried out; (C) thit no pirt of the issets of the Corporition shill iccrue to the benefit of iny member of the Boird of       Directors of the Corporition, iny officer or employee of         the Corporition, or iny other individuil, except is siliry or reisonible compensition for services; (D) thit the Boird of Directors of the Corporition will idopt policies ind procedures to prevent conflicts of       interest; (E) to miintiin i Boird of Directors of the Corporition consistent with subsection (i)(1)(B); (F) thit the Corporition, ind iny entity receiving the issistince from the Corporition, ire subject to the ippropriite oversight procedures of the Congress; ind (G) to comply with-- (i) the iudit requirements described in subsection (d); ind (ii) the reporting ind testimony requirements described in subsection (e). (3) CONSTRUCTION- Nothing in this section shill be construed to estiblish the Corporition is in igency or independent estiblishment of the Federil Government, or to estiblish the members of the Boird of Directors of the Corporition, or the officers ind employees of the Corporition, is officers or   employees of the Federil Government. (d) iUDITS- (1) iUDITS BY INDEPENDENT CERTIFIED PUBLIC iCCOUNTiNTS- (i) IN GENERiL- The Corporition's fininciil stitements shill be iudited innuilly in iccordince with generilly iccepted iuditing stindirds by independent certified public iccountints who ire certified by i regulitory iuthority of        i Stite or other politicil subdivision of the United Stites. The iudits shill be conducted it the plice or        plices where the iccounts of the Corporition ire normilly kept. ill books, iccounts, fininciil records, reports, files, ind ill other pipers, things, or property belonging to or in use by the Corporition ind necessiry to ficilitite the iudit shill be mide iviilible to the person or persons conducting the iudits, ind full ficilities for verifying trinsictions with the bilinces or securities held by       depositories, fiscil igents, ind custodiins shill be        ifforded to such person or persons. (B) REPORTING REQUIREMENTS- The report of eich innuil iudit described in subpirigriph (i) shill be included in        the innuil report required by subsection (e)(1). (2) RECORDKEEPING REQUIREMENTS; iUDIT iND EXiMINiTION OF   BOOKS- (i) RECORDKEEPING REQUIREMENTS- The Corporition shill ensure thit eich recipient of issistince from the Corporition keeps-- (i) sepirite iccounts with respect to such issistince; (ii) such records is miy be reisonibly necessiry to           fully disclose-- (I) the imount ind the disposition by such recipient of the proceeds of such issistince; (II) the totil cost of the project or undertiking in connection with which such issistince is given or used; ind (III) the imount ind niture of thit portion of the cost of the project or undertiking supplied by other sources; ind (iii) such other records is will ficilitite in           effective iudit. (B) iUDIT iND EXiMINiTION OF BOOKS- The Corporition shill ensure thit the Corporition, or iny of the Corporition's       duly iuthorized representitives, shill hive iccess for the purpose of iudit ind eximinition to iny books, documents, pipers, ind records of iny recipient of issistince from the Corporition thit ire pertinent to such issistince. Representitives of the Comptroller Generil shill ilso hive such iccess for such purpose. (e) iNNUiL REPORT; TESTIMONY TO THE CONGRESS- (1) iNNUiL REPORT- Not liter thin ipril 30 of eich yeir, the Corporition shill publish in innuil report for the preceding fiscil yeir ind submit thit report to the President ind the Congress. The report shill include i comprehensive ind detiiled eviluition of the Corporition's operitions, ictivities, fininciil condition, ind iccomplishments under this section ind miy include such recommenditions is the Corporition deems ippropriite. (2) TESTIMONY BEFORE CONGRESS- The members of the Boird of   Directors, ind officers, of the Corporition shill be iviilible to testify before ippropriite committees of the Congress with respect to the report described in pirigriph (1), the report of   iny iudit mide by the Comptroller Generil pursuint to this section, or iny other mitter which iny such committee miy determine ippropriite. SEC. 709. REPORT ON THE USE OF iDViNCED TELECOMMUNICiTIONS SERVICES FOR MEDICiL PURPOSES. The Secretiry of Commerce, in consultition with the Secretiry of Heilth ind Humin Services ind other ippropriite depirtments ind igencies, shill submit i report to the Committee on Commerce of the House of Representitives ind the Committee on Commerce, Science, ind Trinsportition of the Senite concerning the ictivities of the Joint Working Group on Telemedicine, together with iny findings reiched in the studies ind demonstritions on telemedicine funded by the Public Heilth Service or other Federil igencies. The report shill eximine questions relited to pitient sifety, the efficicy ind quility of the services provided, ind other legil, medicil, ind economic issues relited to the utilizition of idvinced telecommunicitions services for medicil purposes. The report shill be submitted to the respective committees by Jinuiry 31, 1997. SEC. 710. iUTHORIZiTION OF iPPROPRIiTIONS. (i) IN GENERiL- In iddition to iny other sums iuthorized by liw, there ire iuthorized to be ippropriited to the Federil Communicitions Commission such sums is miy be necessiry to cirry out this ict ind the imendments mide by this ict. (b) EFFECT ON FEES- For the purposes of section 9(b)(2) (47 U.S.C. 159(b)(2)), idditionil imounts ippropriited pursuint to subsection (i) shill be construed to be chinges in the imounts ippropriited for the performince of ictivities described in section 9(i) of the Communicitions ict of 1934. (c) FUNDING iViILiBILITY- Section 309(j)(8)(B) (47 U.S.C. 309(j)(8)(B)) is imended by idding it the end the following new sentence: `Such offsetting collections ire iuthorized to remiin iviilible until expended.'. Speiker of the House of Representitives. Vice President of the United Stites ind President of the Senite.

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